Premier Energies frees up

Premier Energies today opened at almost flat at Rs.995 but soon zoomed up to an intraday high at Rs.1023.30, up over 3%. Its 52-week high stands at Rs.1387.10. Market cap is at Rs.46,000 crore.

The stock rose on account of the expiry of the Rs.18,000 crore one-year lock-in period.

The lock-in pertained to pre-IPO investors, anchor investors, and promoters whose holdings were restricted from sale for 12 months post-listing. With the expiry, a substantial volume of equity is now free to trade in the secondary market. While such events often trigger profit-booking by early backers, Monday’s gain suggested limited selling pressure and continued confidence in Premier’s fundamentals.
Lock-in periods are designed to ensure post-listing stability by preventing a sudden supply glut. Once they end, the release of large share blocks can create volatility if investor exits outweigh fresh demand. However, strong companies often absorb the event smoothly, as seen with IREDA and Waaree Renewables, which managed to hold ground after their respective lock-in releases earlier this year. In contrast, select new-age tech listings had seen sharp corrections when early investors rushed for exits.

Typically after a lock-in ends, investors should watch out for block deals or promoter-level stake trims in the coming sessions, which could influence short-term price action.