What happens when an IPO shareholder lock-in period ends?

When a shareholder lock-in period ends, early investors and promoters can begin trading their shares on the stock market.

Why are some IPO stocks trading below their issue price?

Stocks may trade below their issue price due to poor company performance, adverse market conditions, or overvaluation at IPO.

Which Indian IPOs have their lock-in ending today?

As of November 20, Vikram Solar, Shreeji Shipping, Gem Aromatics, and Patel Retail are experiencing the end of their lock-in periods.

Home / Business and Economy / IPO Stocks Tumble: 3 of 4 Fall Below Issue Price

IPO Stocks Tumble: 3 of 4 Fall Below Issue Price

20 Nov

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Summary

Three out of four IPOs face shareholder lock-in expiry today.
Nearly ₹410 crore worth of shares become available for trade.
Several stocks are trading significantly below their initial IPO prices.

IPO Stocks Tumble: 3 of 4 Fall Below Issue Price

The financial markets are closely watching as the shareholder lock-in period concludes for four Indian companies: Vikram Solar, Shreeji Shipping, Gem Aromatics, and Patel Retail. Today, approximately 1.5 crore shares, collectively valued at around ₹410 crore, are set to become available for trading on the open market.

This event is particularly significant as a majority of these newly tradeable stocks are performing poorly. Three out of the four companies are currently trading below their respective Initial Public Offering (IPO) prices, indicating a challenging post-listing performance and raising concerns among investors about potential sell-offs.

Vikram Solar, in particular, will see 93 lakh shares become available, valued at ₹275.7 crore, despite closing below its IPO price. Similarly, Shreeji Shipping, Gem Aromatics, and Patel Retail are also facing the end of their lock-in periods, with a substantial number of shares becoming eligible for trade amidst their underperforming stock values.