The said lock-in period freed up 183 million shares of the company representing approximately 2% of the company’s total outstanding shares.
These shares were previously restricted and could not be sold. The end of the lock-in period now makes them eligible for trading.
A three-month share lock-in period is a designated timeframe of three months during which specific shareholders are prohibited from selling or transferring their shares in the stock market. This restriction is commonly enforced after an initial public offering (IPO) to prevent a sudden sell-off that might disrupt the stock price stability.
During the lock-in period, specific shareholder groups, such as company insiders, employees, and early investors, are restricted from selling or trading their shares in the open market. This measure helps maintain stock price stability by preventing an immediate influx of shares after an IPO or similar events, which could otherwise trigger excessive volatility and sharp price movements.
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Once the lock-in period expires, shareholders can freely sell their shares. This often leads to a temporary surge in selling activity as a large number of shares enter the market, potentially causing a short-term decline in stock prices. However, the long-term impact depends on overall investor sentiment and prevailing market conditions.
NTPC Green Energy share price history
Year-to-date (YTD), the shares of NTPC Green Energy have declined by 24.95%, indicating a significant decline over the period. The three-month decline stands at a significant 21.54%. In the last one month alone, the stock has fallen by 11.5%.
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