Latest news with #NuvamaAlternative
Time of India
05-05-2025
- Business
- Time of India
End of Lock-in: Investors may sit tight, but supply can limit upside
Mumbai: The lock-in period for shares of 20 companies that mostly made their stock market debuts in the past 3-6 months is set to end in May. These shares, part of the placements to promoters and investors done before the initial public offerings (IPOs), are worth about $13.5 billion, according to Nuvama Alternative . The lifting of the lock-in does not mean all these investors will rush to offload their holdings. But the risk of supply of shares could put a lid on their gains in the near term. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo Of the total $13.5 billion set to be unlocked this month, Nuvama estimates shares of Swiggy make up for more than half, or over $7 billion, in value. Swiggy shares worth about $7 billion are set to be freed up on May 13 that constitutes nearly 85% of the company's outstanding shares, said Nuvama. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Sagility India , Niva Bupa Health Insurance, Aadhar Housing Finance and Tata Technologies are among the other large companies whose lock-in period for pre-IPO shareholders is coming to an end. "Investors in IPOs, whose shares will be unlocked in the coming weeks, will evaluate alternative investment opportunities and their cost of capital before deciding to sell," said Siddarth Bhamre, head of institutional Research at Asit C Mehta. "Many of these investors are currently sitting on losses and so, there is no immediate pressure to sell." Live Events Agencies Between April 30 and July 28, a total of 58 companies are slated to have their pre-listing shareholder lock-ins worth $26 billion lifted, said Abhilash Pagaria, Head - Nuvama Alternative & Quantitative Research. "It's important to note that not all of these shares will come for sale as a sizeable portion of these shares are also held by the promoter and the group," he said. According to regulations, anchor investors in an IPO face a lock-in period of 90 days for 50% of their allotted shares from the date of allotment and 30 days for the remaining 50%. Other investors have a lock-in period of six months, while for promoters, the lock-in requirement is 18 months for allotments up to 20% of the post-issue paid-up capital. For allotments exceeding 20%, the lock-in period is six months. Pagaria said Swiggy has underperformed since listing, and had many high networth individuals (HNIs) as its pre-IPO investors. The stock is down nearly 22% from its debut on November 13. The demand for recently-listed stocks is relatively muted, said Apurva Sheth, head of research at Samco Securities. "In general, there is less demand for these stocks, and they may not move up for the next few months until this supply is absorbed by the markets," said Sheth. Bhamre said any rise in share prices could prompt some selling, potentially capping further upside in the near term, but significant selling pressure could be limited.
Yahoo
10-02-2025
- Business
- Yahoo
India IPO Market Gets Reality Check as $4 Billion Lockups Expire
(Bloomberg) -- Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here. Nice Airport, If You Can Get to It: No Subway, No Highway, No Bridge Sin puente y sin metro: el nuevo aeropuerto de Lima es una debacle The Forgotten French Architect Who Rebuilt Marseille In New Orleans, an Aging Dome Tries to Stay Super How London's Taxi Drivers Navigate the City Without GPS India's newest stocks joined a broader market selloff in the country as sale restrictions on about $4 billion of such shares expired on Monday. That's adding pressure to a stock market already down $1 trillion in value since mid-December. Lockups in FirstCry operator BrainBees Solutions Ltd., Ceigall India Ltd., Ola Electric Mobility Ltd. and Unicommerce eSolutions Ltd. were among those that ended on Monday, according to data compiled by Nuvama Alternative & Quantitative Research. On Monday, shares of most of the companies cited by Nuvama Alternative fell, led by a 20% drop in train signaling firm Quadrant Future Tek Ltd. Unicommerce eSolutions' shares also slumped 10% in their biggest plunge since trading debut in August. Ola Electric, the Softbank Group Corp-backed electric scooter maker, tumbled 3.3% while food delivery firm Swiggy Ltd.'s shares closed almost 5% lower. It was India's biggest lockup expiry in recent months, but not all these shares were up for sale as the companies' founders hold sizable portions, according to Abhilash Pagaria, head of the researcher Nuvama. For more on IPOs, Terminal users can subscribe to the ECM Watch newsletter here. The expiries come amid a continued rush of Indian initial public offerings — the securities regulator says it's processing more than 60 applications — which has defied the broader pessimism engulfing the nation's shares. Concerns about the slowing economy and earnings growth have contributed to a 20% decline in the total market capitalization of Indian stocks from a December high to $4.1 trillion. 'If the weak sentiment in the secondary market continues, it's likely to create headwinds for the primary market as well,' said Sunil Damania, chief investment officer of Marketsmojo Asset Management. Other companies where lockups expired include Niva Bupa Health Insurance Co. and Acme Solar Holdings Ltd., according to Nuvama Alternative. IPO-bound firms have largely retained their listing plans despite the recent slump, with Hexaware Technologies Ltd.'s share sale in the next few days set to mark the year's first billion-dollar offering . Last year, proceeds from Indian IPOs climbed to a record $21 billion via more than 300 listings. While Hyundai Motor India Ltd.'s $3.3 billion IPO last year was the country's biggest ever, around two-third of the debuts were small firms that raised less than $10 million. --With assistance from Santosh Nair. (Updates with share prices in second paragraph. An earlier version of this story was corrected to fix the total amount in headline and first paragraph.) Trump's Tariffs Make Currency Trading Cool Again After Years of Decline The Reason Why This Super Bowl Has So Many Conspiracy Theories Front-Loading Tariffs Undercuts Trump's Promise of Faster Growth Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison Orange Juice Makers Are Desperate for a Comeback ©2025 Bloomberg L.P. Sign in to access your portfolio
