Now Reading: Shares worth Rs 63,800 crore from 45 IPOs set to be unlocked
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Shares worth Rs 63,800 crore from 45 IPOs set to be unlocked
Shares of at least 45 recently listed companies worth about Rs 63,800 crore ($7.6 billion) will become eligible for trading between August 12 and September-end as post-IPO lock-in periods expire, data from…
The Story in Brief
Shares of at least 45 recently listed companies worth about Rs 63,800 crore ($7.6 billion) will become eligible for trading between August 12 and September-end as post-IPO lock-in periods expire, data from Nuvama Alternative & Quantitative Research shows. The largest unlocks include JSW Infrastructure ($1.48 billion), JSW Cement ($848 million), and Fractal Analytics ($745 million).
A SEBI study of 242 IPOs shows anchor investors sell gradually after lock-ins end, with foreign portfolio investors exiting about 60% of their allocation within a year compared to 38% for mutual funds. The study also found that IPOs where more than 10% of the anchor portion was sold in the first unlock saw a median price decline of about 6%.
The Indian Opinion
SEBI's study on anchor investor behaviour is a useful reality check. The idea that institutional backing is a seal of long-term commitment is clearly exaggerated, FPIs exit nearly twice as fast as mutual funds within a year. Retail investors should watch actual selling volumes, not just the unlock schedule. Will the Rs 1.23 lakh crore JSW Infrastructure unlock trigger a noticeable price dip, or will domestic funds absorb the supply?
Sources (2): economictimes.indiatimes.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
