Equity supply continues on Dalal Street this week in various form as 14 companies will see their shareholder lock-in periods end for various timeframes. The cumulative value of shares whose lock-ins end is worth ₹2,931 crore, based on their respective closing price levels last Friday, October 9.
Most of the companies that saw listings take place in the last one to three months will see their lock-ins end this week, according to Nuvama Alternative & Quantitative Research. These companies include Kanohar Electricals, Prasol Chemicals, Glass Wall Systems, Pranav Constructions, Laser Power & Infra, Kusumgar, Rentomojo, Karamtara Engineering, LCC Projects, Steamhouse India, Manipal Payment & Identity Solutions, Asset Reconstruction Company, Veegaland Developers and SBI Funds Management.
Among the 14 companies whose lock-in ends this week, six each will see lock-ins end on Monday, October 12, and on Thursday, October 15. Two others will see their lock-in end on Friday, October 16.
It must be noted that the end of the shareholder lock-in period does not mean all those shares will be sold in the open market that very day. They only become eligible to be traded.
SBI Funds Management will see the biggest supply coming in this week in value terms when its three-month shareholder lock-in ends on Friday, October 16.
As many as 23.2 million shares, or 1% of the company’s outstanding, will become eligible to be traded when the lock-in ends on Friday, according to Nuvama Alternative. Based on Friday’s closing price, the value of shares that become eligible to be traded, amount to ₹1,160 crore.
Shares of SBI Funds Management are down 20% from their post-listing high of ₹625 and are 13% below their IPO price of ₹574 apiece.
Monday’s session will see six companies, Kanohar Electricals, Prasol Chemicals, Glass Wall Systems, Pranav Constructions, Laser Power & Infra, and Kusumgar, see their shareholder lock-in end. The total value of the shares that become eligible to be traded from today is worth ₹779.5 crore.
| Company | No. Of Shares (Mn) | % Outstanding | Value (₹Cr) |
|---|---|---|---|
| Kanohar Electricals | 2.5 | 3 | 283.5 |
| Prasol Chemicals | 1.1 | 2 | 93 |
| Glass Wall Systems | 3.5 | 4 | 93 |
| Pranav Constructions | 3.4 | 3 | 34 |
| Laser Power & Infra | 5.2 | 4 | 139 |
| Kusumgar | 2.3 | 2 | 137 |
| Nuvama Alternative & Quantitative Research | |||
More recent listings, Rentomojo, Karamtara Engineering, LCC Projects, Steamhouse India, Manipal Payments, and Asset Reconstruction Company, will see their respective shareholder lock-ins end on Thursday, October 15. The value of those shares is over ₹900 crore.
| Company | No. Of Shares (Mn) | % Outstanding | Value (₹Cr) |
|---|---|---|---|
| Rentomojo | 4.7 | 4 | 276 |
| Karamtara Engineering | 5.2 | 2 | 214 |
| LCC Projects | 4.4 | 2 | 63 |
| Steamhouse India | 7.7 | 3 | 99 |
| Manipal Payment | 5.3 | 2 | 191 |
| ARCIL | 7.9 | 2 | 118.5 |
| Nuvama Alternative & Quantitative Research | |||
Apart from SBI Funds Management, whose lock-in ends on Friday, October 16, Veegaland Developers will also see shares worth ₹30 crore become eligible to be traded on Friday, when its one-month shareholder lock-in ends.
Interestingly, 10 out of the 14 companies whose lock-in ends this week are trading well above their respective issue price. The four names who are trading marginally below their issue price include SBI Funds, Veegaland, LCC Projects and Pranav Constructions, as of last Friday’s closing.