Zomato Limited’s shares plunged to clock a new 52- week low after they witnessed selling pressure this week, due to the end of the one-year lock-in period post listing. For a period of one year after the IPO, promoters, founders, employees and other shareholders who held Zomato’s shares before the IPO was not allowed to sell their shares. Once the lock-in period ends, there is a risk that they might sell a huge quantity of shares, putting the stock under pressure.
The lock-in period of a few other companies is also ending in the next month, just like Zomato:
Rolex Rings Limited
The shares of the company got listed on the bourses on August 09, 2021. It gave stellar returns to shareholders as it was listed at a premium of almost 39%. The shares reached their 52-week high of ₹ 1905 apiece just a few days before the lock-in period ends. The stock may witness a heavy sell-off around 9th August 09, 2022.
CarTrade Tech
The shares of this multi-channel auto platform provider company got listed on the Indian stock markets on August 20, 2021. The shares got listed at ₹ 1600 as against their issue price of ₹ 1618. Its shares are currently trading at ₹673 apiece. 57% of its shares cannot be sold currently, however, there can be a sell-off trigger around August 20, 2022.
Glenmark Life Sciences
The shares of this Active Pharmaceutical ingredient (APIs) manufacturer got listed on the bourses on August 06, 2021, at a premium of ₹ 30 per share, against an offer price of ₹ 720 per share. 82.84% of its stocks are currently under the lock-in period and this will end next month. The shares are currently trading at ₹ 463.00 apiece and might decline further due the sell-off pressure around August 06, 2022.
Written by Simran Bafna
Disclaimer
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