Stock Market Braces for Rs 1.17 Trillion Share Unlock Surge Across 50 Companies

November 29, 2024
Stock Market Braces for Rs 1.17 Trillion Share Unlock Surge Across 50 Companies
  • As many as 50 companies are set to unlock shares valued at approximately Rs 1.17 trillion ($13.9 billion) between late November 2024 and January 31, 2025.

  • Typically, half of the shares allocated to anchor investors before an IPO face a 30-day lock-up, while the remaining half are subject to a 90-day lock-up.

  • The expiration of the lock-up period may prompt some investors to sell their holdings, potentially impacting stock prices.

  • However, a significant portion of these shares is retained by promoters and their groups, indicating that not all unlocked shares will be sold.

  • The share unlock includes various timeframes, with lock-in periods ranging from one month to 18 months, and specific dates and quantities for each company.

  • Key companies affected by the expiring lock-up include Swiggy, Afcons Infrastructure, and NTPC Green, with respective unlocks of 65 million shares (3%), 18 million shares (5%), and 183 million shares (2%).

  • Notably, the largest unlocks are from Le Travenues Technology, which will release 284 million shares on December 16, and Allied Blenders and Distillers, unlocking 170 million shares on January 2.

  • Other significant unlocks include Sagility India (158 million shares on December 9), Niva Bupa Health Insurance (67 million shares on December 12), and ACME Solar Holdings (22 million shares on December 11).

  • This unlocking event could also increase the weightage of these stocks in certain global indices.

  • Market participants should closely observe these unlockings, as they are expected to significantly influence market liquidity and pricing.

  • Most of the shares being unlocked are held by promoters, strategic investors, or pre-listing shareholders of companies that have recently gone public.

  • Additionally, some pre-listing shares may be locked up for extended periods, further complicating the market dynamics.

Summary based on 2 sources


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