Stock in Focus: On Monday, November 3, investors will keep an eye on the shares of three companies in the stock market – NSDL, Sri Lotus Developers and M&B Engineering. The reason is the end of their lock-in period. This means that a part of the shareholding of these companies is now worth selling. This information has been given in a report by Nuvama Alternative and Quantitative Research.
About 75 lakh shares of NSDL will be available for trading in the market on Monday. This is approximately 4% of the total equity of the company. According to the current share price, the value of these shares is around ₹870 crore.
NSDL shares are still trading above their IPO price of ₹800. It made a high of ₹1,425 in the initial days of listing, after which there was a slight decline. Its shares closed 1.16% lower at ₹1,158.55 on Friday. This is still about 45% more than the IPO price.
About 79 lakh shares of Sri Lotus Developers will open for trading in the market after the lock-in ends on Monday. This is about 2% of the total equity of the company. As per the current market price, the value of these shares is around ₹144 crore. The company’s shares are currently trading about 22% above its IPO price.
About 38 lakh shares of M&B Engineering will be available for trading from Monday. This is about 7% of the total equity of the company. As per the current share price, the value of these shares is approximately ₹172 crore.
thing worth noting
The end of the lock-in period does not mean that shareholders will immediately sell their shares. This simply means that now the ban on those shares has been lifted and if the shareholders wish, they can sell them in the market.
Often, after the IPO of companies, there is a lock-in period of a few months on the shares of early investors, promoters or employees, so that large quantities of shares do not suddenly come into the market. When this period ends, those shares become ‘eligible for trading’ i.e. able to be sold or bought.
However, this does not mean that all investors will sell shares immediately. Many times investors hold shares for a long period, so even after the lock-in ends, the impact on the market may be limited. But, many times, selling takes place as soon as the ban is lifted to book profits.
Disclaimer: The information provided here is being given for information only. It is important to mention here that investing in the market is subject to market risks. As an investor, always consult an expert before investing money. Moneycontrol never advises anyone to invest money here.