Lock-In Period of Six Companies to Expire in Ashoj and Kartik: Over 2.9 Crore Shares Set to Become Tradable

The lock-in periods of six companies listed on the Nepal Stock Exchange (NEPSE) are scheduled to expire during Ashoj and Kartik, potentially increasing the supply of shares available for trading in the secondary market. The shares belong to promoters, local investors, employees, and mutual funds.

The expiry of these lock-in periods is an important development for Nepal's stock market, as investors monitor changes in the tradable share supply, market liquidity, and potential price movements.

The six companies are Sonapur Minerals and Oil Limited, Upper Mailung Khola Hydropower Limited, Kalinchowk Hydropower Limited, Apollo Hydropower Limited, Sopan Pharmaceuticals Limited, and Chirkhwa Hydropower Limited.

NEPSE Lock-In Expiry Schedule: Company-Wise Details

According to the available company-wise details, the following shares are scheduled to become eligible for trading after their respective lock-in periods expire.

Note: Dates are in the Nepali calendar. Investors should verify the applicable trading eligibility dates through official company announcements and the relevant share registrar.

1. Sonapur Minerals and Oil Limited

Sonapur Minerals and Oil Limited has 1,84,69,800 shares held by promoters and employees scheduled to be released from lock-in restrictions after Ashoj 23.

The number of shares involved makes this one of the major lock-in expiries during the period. Investors may want to examine the company's financial performance, current market price, available tradable shares, and potential selling pressure before making investment decisions.

The expiry does not mean that all eligible shareholders will immediately sell their shares.

2. Upper Mailung Khola Hydropower Limited

Upper Mailung Khola Hydropower Limited is scheduled to see 84,90,800 promoter and local-investor shares become eligible for trading from Kartik 2, following the expiry of the applicable lock-in period.

Hydropower companies can experience changes in market sentiment when a substantial number of previously restricted shares become tradable. However, the actual effect depends on investor behaviour, the company's financial position, and prevailing market demand.

3. Kalinchowk Hydropower Limited

Kalinchowk Hydropower Limited has 41,250 mutual fund shares scheduled to be released from lock-in restrictions on Kartik 6.

Although the quantity is relatively small compared with the larger share releases in this schedule, investors should still consider changes in the company's tradable supply alongside its financial and technical indicators.

4. Apollo Hydropower Limited

Apollo Hydropower Limited has 47,000 mutual fund shares scheduled for lock-in expiry on Kartik 10.

Investors tracking APHL should distinguish between the total number of shares outstanding and the number of shares available for public trading. A change in tradable supply may influence market activity, but it does not independently determine the future direction of the share price.

5. Chirkhwa Hydropower Limited

Chirkhwa Hydropower Limited is scheduled to release 30,20,700 promoter and local-investor shares from lock-in restrictions on Kartik 14.

Investors should assess the quantity being released relative to the company's existing paid-up capital, public float, average daily turnover, and market demand. These factors can help provide a more complete picture of the potential market impact.

6. Sopan Pharmaceuticals Limited

Sopan Pharmaceuticals Limited has 2,10,965 mutual fund shares scheduled to become eligible for trading following the expiry of the lock-in period on Kartik 16.

Investors should review the company's financial statements, earnings outlook, valuation, and trading activity rather than relying solely on the lock-in expiry date when evaluating its shares.

How Can Lock-In Expiry Affect NEPSE Share Prices?

A lock-in period restricts designated shareholders from selling specified shares for a defined period. Once the restriction expires, the eligible shares may become available for secondary-market trading, subject to applicable rules and procedures.

The potential market effects include:

• Increased share supply: More shares may become available for trading.
• Potential selling pressure: Prices could face pressure if eligible shareholders sell substantial quantities while demand remains weak.
• Improved liquidity: Trading activity may increase if additional shares enter the market.
• Limited price impact: A lock-in expiry may have little effect when demand is strong or eligible shareholders continue holding their shares.
• Changes in investor sentiment: Traders may anticipate additional supply before the actual expiry date.

Importantly, the number of shares released is not the same as the number of shares that will actually be sold.

What Should Investors Check Before Buying Lock-In Expiry Stocks?

Investors following NEPSE should evaluate several factors before trading companies approaching lock-in expiry.

1. Compare the released shares with the public float

A large release relative to the existing tradable supply may deserve closer attention than a large number considered in isolation.

2. Monitor trading volume and turnover

Review recent turnover, average daily volume, buying and selling pressure, and broker activity where reliable data is available.

3. Examine company fundamentals

Assess earnings per share, book value per share, debt levels, cash flow, profitability, and future business prospects.

4. Study technical indicators

Use support and resistance, moving averages, RSI, MACD, and trading-volume analysis to understand the stock's current trend and potential risk levels.

5. Avoid decisions based on headlines alone

A lock-in expiry is a market event, not an automatic sell signal. Investors should consider valuation, market conditions, and their own investment horizon.

For practical learning, explore share market training in Nepal and investment training in Nepal to understand stock analysis, market behaviour, and risk management.

Conclusion

The lock-in periods of six companies—Sonapur Minerals and Oil, Upper Mailung Khola Hydropower, Kalinchowk Hydropower, Apollo Hydropower, Chirkhwa Hydropower, and Sopan Pharmaceuticals—are scheduled to expire during Ashoj and Kartik.

The releases include promoter, employee, local-investor, and mutual fund shares. These events may influence the supply-demand balance of the respective stocks, but the actual price impact will depend on how many shares enter the market, investor demand, company fundamentals, and broader NEPSE conditions.

Investors should verify official announcements and assess both fundamental and technical factors before making trading decisions.

Frequently Asked Questions (FAQs)

1. What is a lock-in period in the Nepal stock market?

A lock-in period is a specified period during which certain shareholders are restricted from selling their shares. After the applicable restriction expires, eligible shares may become tradable under the relevant rules.

2. Which companies have lock-in expiries in Ashoj and Kartik?

The six companies are Sonapur Minerals and Oil Limited, Upper Mailung Khola Hydropower Limited, Kalinchowk Hydropower Limited, Apollo Hydropower Limited, Chirkhwa Hydropower Limited, and Sopan Pharmaceuticals Limited.

3. How many shares will become eligible for trading?

The six listed quantities total 3,02,80,515 shares. This represents shares scheduled for release from lock-in restrictions, not necessarily shares that will be sold in the secondary market.

4. Does lock-in expiry cause a share price to fall?

Not necessarily. Prices may face selling pressure if supply increases and demand is weak. Strong demand, continued holding by shareholders, and positive company fundamentals may limit the impact.

5. How can investors prepare for lock-in expiry?

Investors can compare the released quantity with the public float, examine trading volume, study company fundamentals, monitor technical indicators, and establish a risk-management plan.

6. Where can beginners learn NEPSE technical and fundamental analysis?

Beginners can explore share market classes in Nepal to learn chart analysis, financial statement evaluation, market trends, and investment risk management.

7. Does Sarbaguna provide Forex trading courses in Nepal?

Sarbaguna offers educational content and training-related resources for people interested in financial markets. For information about the Forex trading Course in Nepal, contact Deep Thapa through WhatsApp at 9849290806 to confirm the current course details.

Contact Sarbaguna

For share market education, NEPSE technical analysis, fundamental analysis, and Forex trading education, contact Deep Thapa.

Call/WhatsApp: 9849290806

Website: Sarbaguna.com

Learn before you invest. Always assess market risks and verify official disclosures before making financial decisions.