- Date : 03/11/2022
- Read: 5 mins
Watch out for these stocks as their lock-in period nears its end.
Many pre-IPO lock-ins are ending in November, and we expect an ample share supply to hit the stock market. As per SEBI, original investors purchasing a company's shares in pre-IPO issues have a six-month lock-in period. The duration was one year earlier, and the new rule was implemented starting April 1, 2022. Investors will witness expiry in lock-ins of both six months and 12 months. Previously only Domestic Institutional Investors (DIIs), Foreign Institutional Investors (FIIs), and High Net-worth Individuals (HNIs) could invest in pre-IPOs. However, retail investors can now invest in it. A retail investor can invest only up tp Rs. 2 lacs in an IPO, and there is no pre-IPO limit. We have witnessed stocks come under pressure upon lock-in expiry due to an oversupply. We expect these stocks to have a correction.
Also Read: Should you buy, hold, or sell Nykaa shares?
Campus Activewear
Its current market price is Rs. 579.80, and the stock was issued at Rs. 292. Its lock-in period ends on November 3, and investors must have 63.8% shareholding to escape the lock-in. Some of its investors are QRG Enterprises (1.87%) and TPG Growth (7.62%). Its promoters (Nikhil Aggarwal and Hari Kishan Agarwal) can sell their 54% stake as they will become eligible.
Rainbow Children's Medicare
Its current market price is Rs. 690, and the stock was issued at Rs. 542. Its lock-in period ends on November 5, and investors must have 22.7% shareholding to escape the lock-in. British International Investment is a prominent investor with a 9.29% holding.
Nykaa
Its current market price is Rs. 1,180, and the stock was issued at Rs. 1,125. Its lock-in period ends on November 9, and investors must have 67% shareholding to escape the lock-in. Some of its investors are TPG Growth IV (2.3%), Mala Gaonkar (2.4%), Sunil Kant Munjal (3%), Narotam Sekhsaria (3.1%), Steadview Capital Mauritius (3.5%), and Harindarpal Singh Banga (6.4%). Nayar family are the promoters and can sell their 32.4% stake as they will become eligible.
Also Read: Which 5 IPOs will turn out to be blockbusters in 2022?
Fino Payments Bank
Its current market price is Rs. 202.95, and the stock was issued at Rs. 577. Its lock-in period ends on November 10, and investors must have 55% shareholding to escape the lock-in. Lock-in shares of non-promoters are zero. Fino Paytech is the promoter, and its shareholders include Blackstone, BPCL, and ICICI Group, who can sell their 4.5 crore shares as they become eligible.
PB Fintech (Policybazaar)
Its current market price is Rs. 383.50, and the stock was issued at Rs. 980. Its lock-in period ends on November 10, and investors must have 61.70% shareholding to escape the lock-in. Some of its investors are Falcon Q LP (2.58%), Tiger Global (7.1%), Tencent (8.38%), SoftBank (10.2%), and InfoEdge (19.45%). Yashish Dahiya, the CEO, can sell 75 lac shares as he becomes eligible.
One97 Communications (Paytm)
Its current market price is Rs. 637.95, and the stock was issued at Rs. 2150. Its lock-in period ends on November 14, and investors must have 85.76% shareholding to escape the lock-in. Some of its investors are Alibaba (6%), Berkshire Hathaway (2%), Elevation Capital and SAIF Funds (16%), Softbank (18%), and Antfin (25%). Vijay Shekhar Sharma, Founder, can sell an 8.9% stake as he becomes eligible.
Sapphire Foods
Its current market price is Rs. 1460, and the stock was issued at Rs. 1180. Its lock-in period ends on November 15, and investors must have 43.3% shareholding to escape the lock-in. Fennel Private (2.77%) and WWD Ruby (9.77%) are some of its investors. Arinjaya (Mauritius), Sapphire Foods Mauritius, and Sagista Realty Advisors can sell a 31% stake as they become eligible.
Also Read: Reasonable returns vs Supernatural profits
Delhivery
Its current market price is Rs. 344.85, and the stock was issued at Rs. 487. Its lock-in period ends on November 19, and investors must have 82.42% shareholding to escape the lock-in. Some of its investors are FedEx (2.9%), Times Internet (3.9%), Steadview Capital (2.69%), Tiger Global (5.2%), CPPIB (6%), Nexus Partners (9.1%), and Softbank (18.5%).
Tarsons Products
Its current market price is Rs. 775.55, and the stock was issued at Rs. 662. Its lock-in period ends on November 23, and investors must have 51% shareholding to escape the lock-in. Clear Vision Investment Holdings is its most prominent investor, with a 23.42% holding. Promoters Rohan Sehgal and Sanjiv Sehgal can offload their 27.31% stake as they become eligible.
GoFashion
Its current market price is Rs. 1,400, and the stock was issued at Rs. 690. Its lock-in period ends on November 25, and investors must have 46.60% shareholding to escape the lock-in. Sequoia Capital is its most prominent investor, with a 13.88% holding. Saraogi family trusts are the promoter group and can offload a 33% stake as they become eligible.
Ethos Watches
Its current market price is Rs. 977, and the stock was issued at Rs. 878. Its lock-in period ends on November 25, and investors must have 59% shareholding to escape the lock-in. Some of its investors are Markertich Consultancy (1.03%), Alchemy Capital (2.19%), and Abakkus Growth Fund (1.3%). Mukul Agrawal (3.96 %), Siddharth Iyer (2.11%), and Pulkit Seksharia (1.17%) will be eligible to offload their stakes.
Also Read: Should you subscribe to the Delhivery IPO?
These stocks will be nearing the end of their lock-ins, and we hope we have provided some valuable information to you. Will you enter or exit any of these shares? Always do extensive research before investing; only invest if you know a lot about it.
Add standard disclaimer
Many pre-IPO lock-ins are ending in November, and we expect an ample share supply to hit the stock market. As per SEBI, original investors purchasing a company's shares in pre-IPO issues have a six-month lock-in period. The duration was one year earlier, and the new rule was implemented starting April 1, 2022. Investors will witness expiry in lock-ins of both six months and 12 months. Previously only Domestic Institutional Investors (DIIs), Foreign Institutional Investors (FIIs), and High Net-worth Individuals (HNIs) could invest in pre-IPOs. However, retail investors can now invest in it. A retail investor can invest only up tp Rs. 2 lacs in an IPO, and there is no pre-IPO limit. We have witnessed stocks come under pressure upon lock-in expiry due to an oversupply. We expect these stocks to have a correction.
Also Read: Should you buy, hold, or sell Nykaa shares?
Campus Activewear
Its current market price is Rs. 579.80, and the stock was issued at Rs. 292. Its lock-in period ends on November 3, and investors must have 63.8% shareholding to escape the lock-in. Some of its investors are QRG Enterprises (1.87%) and TPG Growth (7.62%). Its promoters (Nikhil Aggarwal and Hari Kishan Agarwal) can sell their 54% stake as they will become eligible.
Rainbow Children's Medicare
Its current market price is Rs. 690, and the stock was issued at Rs. 542. Its lock-in period ends on November 5, and investors must have 22.7% shareholding to escape the lock-in. British International Investment is a prominent investor with a 9.29% holding.
Nykaa
Its current market price is Rs. 1,180, and the stock was issued at Rs. 1,125. Its lock-in period ends on November 9, and investors must have 67% shareholding to escape the lock-in. Some of its investors are TPG Growth IV (2.3%), Mala Gaonkar (2.4%), Sunil Kant Munjal (3%), Narotam Sekhsaria (3.1%), Steadview Capital Mauritius (3.5%), and Harindarpal Singh Banga (6.4%). Nayar family are the promoters and can sell their 32.4% stake as they will become eligible.
Also Read: Which 5 IPOs will turn out to be blockbusters in 2022?
Fino Payments Bank
Its current market price is Rs. 202.95, and the stock was issued at Rs. 577. Its lock-in period ends on November 10, and investors must have 55% shareholding to escape the lock-in. Lock-in shares of non-promoters are zero. Fino Paytech is the promoter, and its shareholders include Blackstone, BPCL, and ICICI Group, who can sell their 4.5 crore shares as they become eligible.
PB Fintech (Policybazaar)
Its current market price is Rs. 383.50, and the stock was issued at Rs. 980. Its lock-in period ends on November 10, and investors must have 61.70% shareholding to escape the lock-in. Some of its investors are Falcon Q LP (2.58%), Tiger Global (7.1%), Tencent (8.38%), SoftBank (10.2%), and InfoEdge (19.45%). Yashish Dahiya, the CEO, can sell 75 lac shares as he becomes eligible.
One97 Communications (Paytm)
Its current market price is Rs. 637.95, and the stock was issued at Rs. 2150. Its lock-in period ends on November 14, and investors must have 85.76% shareholding to escape the lock-in. Some of its investors are Alibaba (6%), Berkshire Hathaway (2%), Elevation Capital and SAIF Funds (16%), Softbank (18%), and Antfin (25%). Vijay Shekhar Sharma, Founder, can sell an 8.9% stake as he becomes eligible.
Sapphire Foods
Its current market price is Rs. 1460, and the stock was issued at Rs. 1180. Its lock-in period ends on November 15, and investors must have 43.3% shareholding to escape the lock-in. Fennel Private (2.77%) and WWD Ruby (9.77%) are some of its investors. Arinjaya (Mauritius), Sapphire Foods Mauritius, and Sagista Realty Advisors can sell a 31% stake as they become eligible.
Also Read: Reasonable returns vs Supernatural profits
Delhivery
Its current market price is Rs. 344.85, and the stock was issued at Rs. 487. Its lock-in period ends on November 19, and investors must have 82.42% shareholding to escape the lock-in. Some of its investors are FedEx (2.9%), Times Internet (3.9%), Steadview Capital (2.69%), Tiger Global (5.2%), CPPIB (6%), Nexus Partners (9.1%), and Softbank (18.5%).
Tarsons Products
Its current market price is Rs. 775.55, and the stock was issued at Rs. 662. Its lock-in period ends on November 23, and investors must have 51% shareholding to escape the lock-in. Clear Vision Investment Holdings is its most prominent investor, with a 23.42% holding. Promoters Rohan Sehgal and Sanjiv Sehgal can offload their 27.31% stake as they become eligible.
GoFashion
Its current market price is Rs. 1,400, and the stock was issued at Rs. 690. Its lock-in period ends on November 25, and investors must have 46.60% shareholding to escape the lock-in. Sequoia Capital is its most prominent investor, with a 13.88% holding. Saraogi family trusts are the promoter group and can offload a 33% stake as they become eligible.
Ethos Watches
Its current market price is Rs. 977, and the stock was issued at Rs. 878. Its lock-in period ends on November 25, and investors must have 59% shareholding to escape the lock-in. Some of its investors are Markertich Consultancy (1.03%), Alchemy Capital (2.19%), and Abakkus Growth Fund (1.3%). Mukul Agrawal (3.96 %), Siddharth Iyer (2.11%), and Pulkit Seksharia (1.17%) will be eligible to offload their stakes.
Also Read: Should you subscribe to the Delhivery IPO?
These stocks will be nearing the end of their lock-ins, and we hope we have provided some valuable information to you. Will you enter or exit any of these shares? Always do extensive research before investing; only invest if you know a lot about it.
Add standard disclaimer
