India’s stock market is set to witness 73 IPO lock-in expiries worth nearly $34 billion over the next three months, potentially increasing volatility as early investors and promoters become eligible to sell shares. While $34 billion worth of lock-in expiries grabs eyeballs, Nuvama Alternative & Quantitative Research highlighted that not all of these shares will come to sale, as promoters and promoter groups also hold a sizable portion.
India’s stock market is set for a wave of IPO lock-in expiries over the next three months, with shares worth $34 billion from 73 recently listed companies becoming eligible for trading, according to Nuvama Research.
IPO lock-in expiries refer to the period during which shareholders, including promoters and institutional investors, are prohibited from selling their shares in the company. The lock-in period is typically six months to one year, during which time the shareholders are not allowed to sell their shares. After the lock-in period expires, the shares become eligible for trading, and shareholders can sell them in the open market.
The value represents the worth of the total number of shares released for trade after lock-in periods of different durations expire. However, it is worth noting that this only implies they will become eligible for trade and doesn't necessarily mean they will be sold in the primary market.
| Company Name | Shares Becoming Eligible for Trade | Estimated Value |
|---|---|---|
| Gaudium IVF and Women Health | 30 lakh shares | — |
| Clean Max Enviro Energy Solutions | 40 lakh shares | $58 million |
| PNGS Reva Diamond Jewellery | 20 lakh shares | $8 million |
| Wakefit Innovations | 40 lakh shares | $6 million |
| Wakefit Innovations | 16.1 crore shares | $231 million |
| Aequs | 14.6 crore shares | $298 million |
| Meesho | 308 crore shares | Over $6 billion |
Other companies expected to witness IPO lock-in expiries in the coming weeks include Emmvee Photovoltaic Power, Fujiyama Power Systems, Capillary Technologies, Sudeep Pharma, Borana Weaves, Sedemac Mechatronics, Aegis Vopak Terminals, ICICI Prudential AMC, Suraksha Diagnostic, Vidya Wires, Corona Remedies, Ikio Lighting, Park Medi World, Nephrocare Health Services, Vishal Mega Mart, Sai Life Sciences, Inventurus Knowledge Solutions, One Mobikwik Systems, and GSP Crop Science.
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The surge in IPO lock-in expiries is expected to affect the Indian stock market, potentially driving volatility and price changes. In 2020, the Indian stock market witnessed a surge in IPO lock-in expiries. The surge in IPO lock-in expirations led to significant market volatility, with stock prices fluctuating wildly.
However, the impact of IPO lock-in expiries on the market can vary depending on several factors, including overall market sentiment, company performance, and economic conditions.
To navigate the surge in IPO lock-in expiries, investors should keep a close eye on the market trends and stock performance.