Pre-IPO Lock-in Expiry Overview: As we look ahead to the remaining months of 2024, a significant development is on the horizon for investors in the Indian stock market. A total of 43 companies are expected to have their pre-listing shareholder lock-ins lifted between October 8 and December 31, potentially releasing shares valued at approximately $18.8 billion. This estimate, reported by domestic brokerage Nuvama Alternative & Quantitative Research, indicates a substantial shift in the market dynamic as these shares become available for trading.
However, it is crucial to note that while the total value of the unlocked shares is substantial, not all shares will necessarily be offered for sale immediately. A significant portion of these shares is held by promoters and affiliated entities, who may choose to retain their holdings for the long term, thereby affecting the actual volume of shares available in the market.
This analysis pertains exclusively to companies that completed their IPOs prior to October 4, 2024, providing investors with insight into potential market opportunities as these lock-up periods come to an end.
The lock-in period for an initial public offering (IPO) is a designated timeframe during which specific investors are prohibited from selling their shares. These regulations are designed to stabilize share prices and provide companies with the necessary time to establish a foothold in the marketplace following their IPO. The duration of the lock-in period varies for different stakeholders, including promoters, anchor investors, and non-promoter groups, reflecting their varying roles and interests in the company.
Key IPO Lock-in Expiry Details
As the IPO lock-in periods begin to expire, here’s a breakdown of the companies that will soon exit their lock-in restrictions:
1-Month Share Lock-in Expiry
According to the report, several companies, including Shree Tirupati Balajee, Tolins Tyres, Bajaj Housing Finance, Kross, P N Gadgil Jewellers, Western Carriers, Arkade Developers, Northern Arc Capital, Manba Finance, KRN Heat Exchanger, and Diffusion Engineers, will see their one-month lock-in periods terminated between October 10 and October 31. Notably, Bajaj Housing Finance is set to unlock the largest number of shares, totaling 126 million, which could greatly influence trading activity in its stock.
3-Month Share Lock-in Expiry
A group of 23 companies, including notable names such as Sanstar, Akums Drugs and Pharma, Ceigall India, Ola Electric Mobility, Unicommerce Esolutions, and others, will experience a three-month lock-in expiry. This release encompasses a diverse array of sectors, which could create varied investment opportunities and volatility in the market as shares become available for trading.
5 & 6-Month Share Lock-in Expiry
Following this, Nuvama anticipates lock-in expiries for shares in Bharti Hexacom, JNK India, Indegene, TBO TEK, Aadhar Housing Finance, Go Digit General Insurance, Awfis Space Solutions, and other companies will occur between October 11 and December 30. This timeframe represents another significant event for the stock market, as increased trading volume may affect share prices across these companies.
1-Year and Beyond Share Lock-in Expiry
Additionally, companies such as IRM Energy, Flair Writing Inds, DOMS Industries, Happy Forging, and Azad Engineering will witness the expiry of their one-year lock-in periods soon. These expiries may draw attention from investors following the performance and strategic moves of these firms post-IPO.
Looking further ahead, three companies will begin to see lock-ins of 1.5 years or more come to an end. This includes Udayshivakumar Infra and Avalon, with their lock-in expiries slated for October, while Mankind Pharma’s lock-in period is scheduled to end in November. Such expiries mark pivotal moments for these companies as long-term investors reassess their positions and potential returns.
Disclaimer: The views and recommendations provided are based on the analyses by individual experts or brokerage firms and do not reflect the views of Mint. Potential investors are strongly advised to consult with qualified professionals before making investment decisions.
