₹21,000 Crore Lock-in Expires: Wakefit, ICICI Pru AMC Shares Hit Market
Overview
Nearly ₹21,001 crore in shares from 11 companies, including recent IPOs like Wakefit Innovations, ICICI Prudential AMC, Emcure Pharmaceuticals, and Canara HSBC Life Insurance, will become tradable this week as shareholder lock-in periods expire. While not all shares will sell, this influx of potential supply could pressure stock prices.
Major IPOs Face Lock-in Expiry
This week, shares valued at approximately ₹21,001.99 crore from 11 companies are set to become tradable as their shareholder lock-in periods conclude. The list features several recent initial public offerings (IPOs), including prominent names like Wakefit Innovations, ICICI Prudential AMC, Emcure Pharmaceuticals, and Canara HSBC Life Insurance. The expiration of these lock-in periods signifies that early investors and promoters are now legally permitted to sell their holdings.
Wakefit Innovations will see 14.9 million shares, representing 5% of its outstanding equity, free up for trade on Monday, January 12. These shares are currently worth ₹257 crore. The company's stock closed 0.68% higher on Friday at ₹172.50, trading below its IPO price.
ICICI Prudential AMC, one of India's largest asset managers, will have 7 million shares (1% of equity) become tradable on Friday, January 16. These holdings are valued at ₹1,862 crore at current prices, with the stock trading 23% above its issue price.
Canara HSBC Life Insurance Company's three-month lock-in ends Tuesday, January 13, releasing 35.4 million shares, or 4% of its equity, valued at ₹521 crore. The shares are up nearly 40% from their IPO price.
Other Companies Affected
Emcure Pharmaceuticals faces a significant release of 38 million shares (20% of equity) worth ₹5,862 crore on Monday, January 12. Canara Robeco Asset Management Company will also see 7.5 million shares (4% of equity) become tradable on the same day, valued at ₹220.5 crore. Among others, Travel Food Services has a substantial 66% of its outstanding equity, valued at ₹10,029 crore, freeing up on January 12. Smartworks Coworking Spaces is set to release 31.2 million shares (27% of equity) worth ₹1,441.44 crore on January 16.
Potential Selling Pressure
The conclusion of shareholder lock-in periods does not automatically mean all these shares will be sold. However, the substantial value of shares becoming available for trading could introduce considerable selling pressure into the market. This increased supply might lead to downward price movements for these companies, especially for those whose stocks are already trading below their IPO prices or have seen recent dips.
