This surge arises as various lock-in periods are set to expire for both promoters and investors who participated in pre-IPO placements. Pre-IPO investors must compulsorily hold the shares for six months from the IPO, while promoters must hold a minimum of 20% for a year. This is particularly significant given the elevated levels of equity supply in the market, said analysts. "FY24 is headed towards a $35 billion-plus equity supply - the highest ever, even without much fundraising by banks. "So unless FPI flows improve, we can see equity supply capping the near-term market upside."

Source: Economic Times October 11, 2023 12:47 UTC