NTPC Green Energy Shares Fall 3% After Lock-in Ends

26 Dec 2024 , 12:38 PM

As NTPC Green Energy’s one-month shareholder lock-in period ends today, 183 million shares will be available for open market trading, causing shares to drop up to 3% on Thursday to a day’s low of Rs 128.25.

This implies that roughly 183 million of the company’s shares, which were previously locked in and not allowed to be sold, will now be available for purchase.

According to a report by the domestic research firm Nuvama Alternative & Quantitative Research, these shares of NTPC Green Energy account for roughly 2% of all outstanding shares.

Certain shareholders are prohibited from selling or transferring their shares in the market for a period of one month, which is known as a one-month share lock-in period.

In order to stabilize stock prices and avoid abrupt sell-offs, certain investors are prohibited from selling their shares during a “lock-in period” following a company’s initial public offering (IPO).

This time frame, which is usually six months but can occasionally go up to a year, guarantees that significant investors, such as promoters and anchor investors, retain their shares and support the long-term expansion of the business.

Employees, early investors, and corporate insiders are among the shareholders who are prohibited from selling or trading their shares on the open market during the lock-in period.

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