This means that approximately 18.2 crore (182 million) shares of the company, which were previously locked in and prohibited from sale, will now be eligible to be sold. These 18.2 crore represents 4% of the total equity.
A 3-month share lock-in period refers to a time frame of a month, during which certain shareholders are restricted from selling or transferring their shares in the market.
When a company goes public through an IPO, certain investors are restricted from selling their shares during a “lock-in period” to stabilize stock prices and prevent sudden sell-offs.
Typically set at six months but sometimes extending up to a year, this period ensures major investors, like promoters and anchor investors, hold their shares, supporting the company’s long-term growth.
During the lock-in period, shareholders such as company insiders, employees, or early investors are not allowed to sell or trade their shares in the open market, which helps stabilize the stock price by preventing a large influx of shares hitting the market immediately after such events, which could cause volatility.Once the lock-in period expires, shareholders can sell their shares. This often causes a temporary increase in selling pressure, potentially leading to a stock price drop.The shares of Ola Electric Mobility have surged by nearly 2% to Rs 77.84 from the price band of Rs 72- Rs 76.
In the last one month, the shares of the company went down by 21.54% and by 4.14% in the last two weeks.
Ola Electric Mobility informed that a meeting of the Board of Directors is scheduled to be held on November 08, inter alia, to consider and approve the unaudited standalone and consolidated financial results of the Company for the quarter and half year ended September 30, 2024, along with the Limited Review Report of the Auditors thereon.