Deepa Jewellers, Rays of Belief, Purple Style Labs, Priority Jewels, ESDS Software, Knack Packaging, SAi Parenteral’s, Amir Chand Jagdish Kumar, TruAl…
1/8With a flurry of IPOs that Dalal Street has seen since June, a number of companies will now start to see their respective shareholder lock-ins end across various time periods. As many as 15 companies will see equity supply worth over ₹16,000 crore come into the market during the course of the week, with lock-ins of 10 companies scheduled to end as early as today. Here’s a look at the complete list for the week.
2/8Deepa Jewellers, Rays of Belief, Purple Style Labs, Priority Jewels, ESDS Software, Knack Packaging, SAi Parenteral’s, Amir Chand Jagdish Kumar, TruAlt Bio Energy and EPack Prefab are companies whose lock-in ends on Monday. Apart from these 10, Coal India’s subsidiary CMPDI, Pace Digitek, Glottis, Valiant Labs and Om Freight Forwarders are the other five companies whose lock-in will end during the course of the week.
3/8It must be noted that the end of the shareholder lock-in period does not mean that all the shares will be sold in the open market. They only become eligible to be traded. Lock-ins for two companies each ends on Tuesday and Wednesday, while one will see its lock-in end on Friday.
4/8Among the companies whose lock-in ends this week, Coal India’s subsidiary Central Mine Planning and Design Institute (CMPDI) has the biggest share in terms of value. The company’s six-month shareholder lock-in will end on Tuesday, October 6, making 464 million shares of the company, or 65% of its outstanding equity eligible to be traded, according to Nuvama Alternative and Quantitative Research’s Abhilash Pagaria’s note. Based on Thursday’s closing price, the total value of shares that will become eligible to be traded is worth ₹9,512 crore. Shares of CMPDI are down 28% from their post-listing high of over ₹280, but are still 20% above their issue price of ₹179.
5/8Another standout name whose shareholder lock-in ends this week is ESDS Software Solutions. As many as 25 million shares or 2.5% of its outstanding becomes eligible to be traded as its lock-in ends today. Based on Thursday’s closing price, the value of these shares is worth ₹358.5 crore. The stock made headlines by delivering 4x returns from its issue price of ₹429 in just a few days of listing. However, it has now had five straight lower circuits of 5%, ever since it disclosed its first quarterly results after listing last week.
6/8Besides ESDS, lock-ins of Deepa Jewellers (₹75 crore), Rays of Belief (₹23 crore), Purple Style Labs (₹144.4 crore), Priority Jewels (₹20.4 crore), Knack Packaging (₹70 crore), Sai Paranteral’s (₹1,108 crore), Amir Chand Jagdish Kumar (₹1,250 crore), TruAlt Bio Energy (₹1,250 crore), and EPack Prefab (₹155.5 crore), will also be opening today. The figures mentioned in the brackets are the value of the shares of these respective companies that become eligible to be traded from today.
7/8While CMPDI’s lock-in will end on Tuesday, Pace Digitek will also see shares worth ₹1,783 crore become eligible to be traded on Tuesday, October 6, when its lock-in opens. Shares of Glottis (₹278.2 crore), and Valiant Labs (₹107.5 crore), will also see their respective lock-ins open on Wednesday, October 7. Om Freight Forwarders, whose shares have nearly halved from their issue price, will its lock-in end on Friday, October 9, when shares worth ₹173.6 crore will free up for trade.
8/8Another interesting insight among companies whose lock-ins end this week is that eight out of these 15 companies are trading below their issue price, while eight companies are also trading at least 20% or more lower than their post-listing high.