$18.8 billion pre-IPO shares of 43 stocks set to escape lock-up in Oct-Dec

As many as 43 companies will see their pre-listing shareholder lock-in period being lifted between October 8 and December 31, 2024, resulting in freeing up of shares amounting to $18.8 billion in the secondary market. The list includes Bajaj Housing Finance, Ola Electric Mobility, Akums Drugs and Pharma, Brainbees, Premier Energies, Bharti Hexacom, and many others.

“Between 8th Oct 2024, and 31st Dec 2024, a total of 43 companies are slated to have their pre-listing shareholder lock-ins lifted amounting to the value of USD 18.8bn,” Nuvama Alternative & Quantitative Research says in a note.

The value pertains to the total lock-up opening shares, but it’s notable that not all of these shares will come for sale as a sizable portion of these shares are also held by promoters and groups.

“We have conducted an extensive analysis encompassing all shareholders, both promoters and non-promoters, for these companies. Our study encompasses businesses listed up until October 4, 2024,” the brokerage says in its report.

As per the report, in October, the one-month lock-in period will expire for 11 stocks - Bajaj Housing Finance, Shree Tirupati Balajee, P N Gadgil Jewellers, Arkade Developers, Manba Finance,  Diffusion Engineers, Tolins Tyres, Kross, Western Carriers, Northern Arc Capital, and KRN Heat Exchanger.

Besides, the three-month lock-in period will expire for 23 companies, including Ola Electric Mobility, Brainbees, Akums Drugs & Pharma, Unicommerce Esolutions, Interarch Building Products, Akums Drugs & Pharma, and others.

Meanwhile, 5 and 6 months lock-in periods will expire for 14 stocks, including Bharti Hexacom, Go Digit General Insurance, Indegene , TBO TEK, Aadhar Housing Finance, and others.

As per the report, 6 companies will see their 1-year lock-in period for pre-listing shareholders lifted. This includes IRM Energy, Flair Writing Industries, Happy Forging, DOMS Industries, and  Azad Engineering.

Udayshivakumar Infra, Avalon Tech, and Mankind Pharma are slated to see 1.5 year and beyond lock-in period lifting on October 8, October 14, and November 4, respectively.

Indian initial public offering (IPO) market has seen a surge in listing activities in the first half of the current fiscal, with 40 companies raising ₹51,365 crore via mainboard offerings. This is 95% higher than the ₹26,311 crore mobilised by 31 IPOs in the same period in 2023-24, as per the data from PRIME Database.

Going ahead, the pipeline remains strong, with 26 companies proposing to raise ₹72,000 crore are presently holding SEBI approval while another 55 companies looking to raise about ₹89,000 crore are awaiting SEBI approval.

The data showed that the overall response from the public was excellent, primarily driven by strong listing performance. Of the 38 IPOs for which data is available presently, 35 IPOs received a mega response of more than 10 times (of which 17 IPOs more than 50 times) while 2 IPOs were oversubscribed by more than 3 times. The balance 1 IPO was oversubscribed between 1 to 3 times.

The first half of 2024-25 saw 84 companies filing their offer documents with SEBI for approval (in comparison to 40 in the first half of 2023-24). On the other hand, in the same period, 3 companies looking to raise nearly ₹7,500 crore let their approval lapse, 4 companies looking to raise ₹13,450 crore withdrew their offer document and SEBI returned the offer document of a further 8 companies looking to raise ₹15,500 crore.

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