$67 billion! Dalal Street braces for 81 IPO lock-in expiries in next 3 months. Check details

Dalal Street is heading into a busy phase of IPO lock-in expiries, with a significant portion of pre-listing shareholder restrictions set to be lifted over the next three months. According to estimates by Nuvama Alternative & Quantitative Research, as many as 81 companies will see their lock-ins expire between April 7 and July 31, potentially unlocking stock worth nearly $70 billion.

The value refers to the total shares becoming eligible for trading as lock-up periods end. However, not all of these shares are expected to be sold in the secondary market, as a substantial portion remains held by promoter groups who typically continue to retain their stakes.

Among the notable names in April, Bharat Coking Coal will see its three-month lock-in end on April 15, with 59 million shares or 1% of equity becoming eligible for trading. Amagi Media Labs follows on April 20, with 11 million shares or 5%, while Shadowfax Technologies will have 35 million shares or 6% unlocked on April 23.

In May, Fractal Analytics and Aye Finance will see lock-in expiries on May 13, involving 7 million shares (4%) and 18 million shares (7%), respectively. Later in the month, Gaudium IVF and Women Health will unlock 3 million shares or 4% on May 26, followed by Clean Max Enviro Energy Solutions on May 27 with 4 million shares or 4%. PNGS Reva Diamond Jewellery will also see 2 million shares or 7% becoming tradable on May 29.

In June, Omnitech Engineering will have 4 million shares or 3% unlocked on June 1, while SEDEMAC Mechatronics will see 1 million shares or 3% become eligible for trading on June 8.

A host of stocks will also witness six-month shareholder lock-in periods expiries over the coming weeks. Starting April 13, Tata Capital will see a significant 2,858 million shares, or 67% of equity, become eligible for trading. On the same day, WeWork India will have 60 million shares, representing 45%, unlocked.

On April 15, LG Electronics India will see 441 million shares or 65% of equity become tradable. This will be followed by Canara Robeco AMC on April 17, with 110 million shares or 55% unlocking, and Canara HSBC Life Insurance on April 20, where 522 million shares or 55% will
be released.

Later in April, Midwest will see 6 million shares or 17% unlocked on April 24, followed by Capillary Technologies on April 28 with 0.5 million shares or 0.7%. Tenneco Clean Air India will also see 3 million shares or 0.8% become tradable on April 30.

In May, Lenskart Solutions will have 1,047 million shares or 60% unlocked on May 8, alongside Emmvee Photovoltaic Power with 5 million shares or 0.7%. This will be followed by Aequs on May 11 with 1 million shares or 0.2%.

Finally, Billionbrains Garage Ventures will see a large expiry on May 12, with 4,182 million shares, or 68% of equity, becoming eligible for trading.

While lock-in expiries are a routine part of the IPO cycle, clustered unlocks of this scale tend to attract attention and can weigh on stock prices in the short term. Nuvama noted that despite the headline figure of $67 billion, the actual market impact will depend on how much of the eligible stock is eventually offered for sale.

The upcoming lock-in expiries come at a time of heightened geopolitical uncertainty, with tensions in the Middle East still elevated and rising crude prices fuelling concerns over potential rate hikes. Although a two-week ceasefire is currently in place, its durability remains uncertain, leaving markets vulnerable to volatility if tensions escalate further.

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