The lock-in period for pre-listing shareholders of 38 companies will be lifted in the next two months, potentially freeing up shares worth nearly $21 billion for secondary sales. Newly listed entities Ceigall India, Unicommerce Esolutions, and FirstCry parent Brainbees Solutions are among the companies where one month lock-in period will end this month. Meanwhile, Ola Electric Mobility, Le Travenues Technology, Allied Blenders & Distillers, and Akums Drugs & Pharma are also scheduled this month as their 3-month lock-in period will expire.

“Between September 5, 2024, and November 30, 2024, a total of 38 companies are slated to have their pre-listing shareholder lock-ins lifted amounting to the value of $21 billion,” Nuvama Alternative & Quantitative Research says in a note today. 

“The value pertains to the total lock-up opening shares, but it’s important to note that not all of these shares will come for sale as a sizable portion of these shares are also held by promoter & group. We have conducted an extensive analysis encompassing all shareholders, both promoters and non-promoters, for these companies. Our study encompasses businesses listed up until August 28, 2024,” says Abhilash Pagaria, Head, Nuvama Alternative & Quantitative Research.

As per the report, in September, the one-month lock-in period will expire for five stocks - Ceigall India, Unicommerce Esolutions , Brainbees Solutions, Interarch Building Products, and Orient Technologies.

Adding to it, three-month lock-in period will expire for 15 companies - Ola Electric Mobility, Le Travenues Technology, DEE Development Engineers, AKME FIntrade, Stanley Lifestyles, Allied Blenders & Distillers, Vraj Iron and Steel, Emcure Pharma, Bansal Wires, Sanstar, Akums Drugs & Pharma, Unicommerce Esolutions, Interarch Building Products, Brainbees, and Orient Technologies.

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

Besides, the 1-year lock-in period for pre-listing shareholders of 5 companies will be lifted. This includes JSW Infra, Jupiter Lifeline Hospital, Valiant Labs, IRM Energy, and Flair Writing Industries. Among others, 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.

India has emerged as the world’s hottest market for initial public offering (IPO) activities, with 153 companies hitting Dalal Street in the first half of this year. In the first half of the current calendar year (H1 CY24), 38 main board and 115 small and medium enterprises raised ₹34,923 crore, which is 3.5 times more than the ₹9,886 crore mobilised by 82 IPOs (10 main board & 72 SMEs) in the same period last year. Most of these IPOs were small to medium-sized, mostly from industrials, consumer, materials, technology, and health and life sciences. This accounts for 27% of worldwide IPOs by deal volume and 9% in terms of proceeds, positioning the fifth largest economy at the forefront of global IPO activities in the first half of 2024, as per the latest EY Global IPO Trends report.

Remarkably, the average issue size of main-board IPOs also experienced an uptick, rising to ₹893 crore in H1 CY24 as compared to ₹848 crore in the same period last year. For the financial year 2023-24 and 2022-23, the average size was ₹815 crore and ₹1,409 crore, respectively, as per primedatabase.com.

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