September likely to witness a flood of locked-in shares
shares of at least 10 companies could find their way into the open market in September as the deadline for investors to compulsorily hold these shares bought through pre-Initial Public Offer (IPO) placements ends. Computer Age Management (CAMS), Concord Biotech, SBFC Finance, Happiest Minds, Route Mobile, and Chemcon Speciality, are among the companies whose shares could see sellers during the month.
Ending of the lock-in period does not necessarily mean investors who received shares in the pre-IPO sale will offload their entire holdings.
But, whether pre-IPO investors are selling or holding on will be of interest for traders as large blocks of selling tend to weigh down share prices in the near-term.
The lock-in period for pre-IPO investors differs for different types of investors. For instance, promoters must hold at least 20% of the shares received for a year from the IPO, while institutional investors must hold for at least six months.
