NTPC Green Energy shares fall 3% as 1-month lock-in period ends today

Shares of NTPC Green Energy fell up to 3% on Thursday to day's low of Rs 128.25 as its 1-month shareholder lock-in period expires today, freeing up 183 million shares to trade in the open market.

This means that approximately 183 million shares of the company, which were previously locked in and prohibited from sale, will now be eligible for sale.

These shares of NTPC Green Energy represent about 2% of the total outstanding shares, according to a report by domestic research firm Nuvama Alternative & Quantitative Research.


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A 1-month share lock-in period refers to a time frame of one 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. This 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 leads to a temporary increase in selling pressure, potentially causing a drop in stock price.

On Tuesday, the shares of NTPC Green Energy closed 1% lower at Rs 133.10 on the BSE.

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