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Mumbai: $69B in IPO Shares Now Tradable
18 Mar
Summary
- Over $69 billion in pre-IPO shares are now tradable.
- Lock-in periods of one to six months are expiring.
- Supply overhang may limit near-term stock gains.
A substantial $69 billion in pre-IPO shares from 87 companies are now eligible for trading as mandatory lock-in periods conclude over the next three months. The initial expirations began this week, with more significant unlocks for companies like Urban Company, GK Energy, and Euro Pratik Sales scheduled. These lock-ins, lasting from one to six months, will significantly increase the potential supply of shares in the market.
Despite the increased availability, a significant portion of these shares are promoter-held, which may limit the immediate sell-off. Analysts anticipate that the current market environment and the fact that some stocks are trading below their issue price could prevent a rush of sales. While some shares like ICICI Prudential AMC remain at a premium, others may see their gains capped due to the impending supply overhang.
