Shares of 66 cos to face selling pressure as lockin period comes to end

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There are 66 listed companies which will face end of lock-in period in the next four months. This may lead to selling pressure on these stocks in near future. The total value of these shares is about Rs 1.48 lakh crore. These companies had their IPOs in the last one year.

According to a report by Nuvama-Wealth Management, the 66 companies whose shares are ending their lock-in period include Tata Technologies, Honasa Consumer, Cello World and Jan Small Finance Bank. Apart from this, the lockin period of Global Surface, Sai Silks, JSW Infra, Platinum Industries and Exicom Technology is going to end on 1st April.

According to the rules of capital market regulator SEBI, the shares allotted to the anchor investors and promoters of the company whose IPO is launched cannot be sold for 90 days. SEBI has implemented this rule to prevent huge fluctuations in the shares of new companies being listed and to protect the interests of retail investors.

Many anchor investors sell their stake after the lock-in period to book profits, which leads to fall in share prices of these stocks. In the past, this kind of trend has been seen in shares of companies like Zomato, PB Fintech and Delivery. After the end of the lockin period in Zomato, big investors like Alibaba had reduced their stake.