IPO investors brace for 83 lock-in expiries worth $55 billion in three months. Do you own any?

Synopsis

IPO investors are bracing for a significant wave of lock-in expiries between May and August, with shares of 83 newly-listed companies valued at $55 billion becoming eligible for trade. This period will see major companies like Lenskart, Groww, and Pine Labs experience their lock-in periods ending, potentially impacting market dynamics.

The Indian stock market will see a rush of lock-in expiries between May and August this year, with shares of 83 newly-listed companies worth $55 billion becoming eligible for trade when their mandatory shareholder lock-in periods expire, according to Nuvama Alternative & Quantitative Research.

The value represents the worth of the total number of shares freeing up for trade after lock-in periods of different time frames expire. However, it is worth noting that this only implies that they will become eligible for trade and doesn't imply that they will necessarily be sold in the primary market.

The first set of lock-in expiries began yesterday when 90 lakh shares of Deepak Builders & Engineers worth $8 million and 7.4 crore shares of Afcons Infrastructure worth $260 million became eligible for trade as their respective lock-in periods expired. The two stocks had been listed on stock exchanges NSE and BSE back in October 2024.

Lenskart lock-in expiry

Next, 2.4 crore shares of Studds Accessories worth $121 crore will free up on May 7 (Thursday). India’s secondary market will see three lock-in expiries on May 8 (Friday). Around 104.7 crore shares of Lenskart Solutions worth $5.6 billion will become eligible for trade as their six-month shareholder lock-period expires. The share of the popular eyewear retailer made a muted market debut in November last year, listing at a discount of nearly 3% over the IPO price at Rs 390 apiece on BSE. The stock has so far gained more than 32% since then to close at Rs 516.90 apiece on BSE on Monday.

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Around 8.7 crore shares of Orkla India worth $580 million as well as 50 lakh shares of Emmvee Photovoltaic Power worth $13 million will see their respective lock-in periods expire on the same day. Both the stocks debuted on Dalal Street in November last year, along with Lenskart. Later on April 11, Aequs shares worth $2 million and Sagility India shares worth $403 million will become eligible for trade.

Groww lock-in expiry

Markets will see some big lock-in expiries following this, with 418.2 crore shares of Groww-parent Billionbrains Garage Ventures worth $9.4 billion becoming eligible for trade on May 12. After its Rs 6,632-crore IPO was subscribed more than 17 times, the shares of the broking platform listed with 14% premium at Rs 114 apiece on NSE in November last year. The stock then rallied more than 93% to close at Rs 220.05 apiece on Monday.

Pine Labs lock-in expiry

The shares of Pine Labs, Niva Bupa Health, Fractal Analytics and Aye Finance will undergo lock-in expiries on May 13. Pine Labs shares listed with 9.5% premium at Rs 242 apiece in November last year, after the fintech platform’s Rs 3,900-crore IPO was subscribed more than 2 times. The stock has jumped 19% since then.

Niva Bupa Health Insurance lock-in expiry

Niva Bupa Health Insurance Company shares listed with 6% premium over IPO price at Rs 78 apiece in November, and is only marginally up from that level to close at Rs 79.31 apiece on Monday. According to Nuvama, around 36.6 crore shares of the company worth $299 million will become eligible for trade as their six-month lock-in period expires.

Meanwhile, 1.8 crore shares of Aye Finance worth $25 million and 70 lakh shares of Fractal Analytics worth $67 millions will free up for trade on May 13 after their three-month lock periods expire. On the other hand, 10 lakh shares of Om Power Transmission worth $3 million, will become free up for trade on May 15 after their one-month lock-in expires.

Physicswallah lock-in expiry

Physicswallah shares made a strong market debut in November last year, listing with a premium of 33% over its IPO price on NSE. Around 25.9 crore shares of the edtech company worth $298 million will become eligible for trade after the six-month lock-in period expires on May 18. Tenneco Clean Air India and Aadhar Housing Finance shares will also undergo lock-in expiries on May 18.

Towards the end of the month, some of the shares of Clean Max Enviro Energy Solutions, PNGS Reva Diamond Jewellery and Gaudium IVF will become eligible for trade after their three-month lock-in periods expire. Meanwhile, Emmvee Photovoltaic Power, Fujiyama Power Systems, Capillary Technologies, Sudeep Pharma and Borana Weaves will also undergo lock-in expiries in the last 10 days of the month.

Take a look at all the lock-in expiries taking place in May, according to Nuvama.

Later in June, ICICI Prudential AMC, Meeswho, Wakefit, Vishal Megamart, Mobikwik, ICICI Prudential AMC will see lock-in expiries. In July, the notable names which will undergo lock-in expiries include Kaplataru, Bharat Coking Coal, Smartworks Coworking, Shadowfax Technologies, Anand Rathi Share and Stock Brokers, Brigade Hotel Ventures and more.

While $55 billion worth of lock-in expiries grabs eyeballs, Nuvama highlighted that not all of these shares will come for sale as a sizable portion of these shares are also held by promoters and promoter groups.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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