Lock-in period for Nepal Micro Insurance ending: when will they be tradable?

The lock-in period for 112,500 shares of Nepal Micro Insurance Company Limited will end on Bhadra 22.

When the company issued a total of 2.25 million IPO shares, 112,500 shares were allocated to mutual funds.

According to the rules, shares given to mutual funds must remain locked for six months from the IPO allotment date. So far, these shares have been restricted from trading.

Now, after the lock-in period ends, these shares can be traded on the secondary market.

Lock-In Period in an IPO

When a company goes public through an IPO, not all shareholders can sell their shares right away. This waiting time is called the lock-in period. It usually applies to promoters, early investors, and employees who owned shares before the company started trading. During this time, they are not allowed to sell their shares for a set period, often between six months and one year after the shares begin trading.

The main reason for this rule is to keep the stock price steady after the IPO. If big shareholders sold their shares immediately, the price could drop sharply. The lock-in period helps prevent sudden price changes and keeps the market stable.

For regular investors, it is important to know when the lock-in period ends. When many locked shares become available at once, it can affect the share price. Knowing this date can help investors avoid surprises or find good chances to buy shares.