Sonapur Minerals and Oil Limited (SONA), listed on the Nepal Stock Exchange (NEPSE), has paid up capital of Rs. 3,075,050,000 and has attracted attention of investors following the conclusion of the lock-in period for its promoter and employee shares on October 9, 2026. Among the 30,750,500 shares listed on NEPSE, the promoters held 18,450,300 units, and the company's employees held 19,500 units.
The company recorded a volume of 2.724 million during the month through October 29, while 1.586 million volume was recorded in September which indicates the increase in trading activity despite there being less trading days in October. The immediate trading sessions surrounding the lock-in expiry were particularly active. On October 8, SONA recorded a volume of 282.47k, followed by around 313.043k on October 9, the date the lock-in period concluded.
Generally, right after the conclusion of the lock-in period, investors anticipate increased supply and potential selling pressure; however, in SONA’s case the increase in trading activity has not translated into a sustained decline in its share price. Why?
So, first of all, the conclusion of a lock-in period does not automatically mean that shareholders will sell their holdings. It simply removes a restriction on eligible shares. Promoters may continue holding their shares because of their long-term outlook, valuation expectations or strategic interests in the company. And this case just might be the perfect example because the lock-in expiry coincided with increased market participation. Right after the conclusion period, SONA’s price did show some fluctuation for the first few trading days but the combination of higher trading activity after dashain and rising share prices due to consistent rise in NEPSE in the recent days suggests that buying demand was sufficient to absorb the shares being offered in the market during this period. Although, this does not establish whether the buyers were acquiring newly unlocked promoter holdings or shares already in circulation.
SONA closed at Rs. 429 on October 9, compared with Rs. 420 at the end of September. As of October 29, its closing price had reached Rs. 472.90, representing an increase of approximately 10.23% from the October 9 closing price.
The conclusion of SONA's lock-in period coincided with a significant increase in trading volume, yet its share price continued to rise. This suggests that the anticipated selling pressure has not dominated price action so far. However, the increase in volume alone does not establish whether newly unlocked shares have entered the market in significant quantities. Whether this trend continues will depend on actual selling behaviour, market demand and the company's broader fundamentals.
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