Can someone explain to me what is IPO Lockin and how long is it and applicable for all shares or certain shares?
There is a lock-in for the anchor investors. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
Who are Anchor investors?
This is an institutional investor who confirms their interest to apply in the IPO one day before the bidding opens.
The lock-in is not applicable for any retail or HNI participant.
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Do they also apply through the IPO bidding process (or) do they directly buy these shares from the company just before the IPO ?
The anchor investors are part of the IPO process itself and their bids are accepted at cut-off. However, unlike other investors who place their bid during the IPO window, they put in their confirmation one day in advance.
In essence, they act like their name suggests - anchors to an IPO.
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So even when getting an alloted SME IPO I can sell the shares the day of listing and cash out on listing gains?
Yes, you can sell the shares on the day of listing at your discretion.
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