January 8, 2025 represents a pivotal trading session for multiple recently listed companies as their respective shareholder lock-in periods conclude, potentially freeing up shares worth over ₹4,500.00 crore for market trading. The most significant developments involve e-commerce platform Meesho Limited and financial services giant Tata Capital, both of which will see substantial portions of their equity become eligible for trading.

Meesho's Lock-in Period Concludes

Meesho Limited reaches a major milestone as its one-month shareholder lock-in period expires, according to Nuvama Alternative & Quantitative Research. The conclusion of this restriction makes a substantial portion of the company's equity available for potential trading.

The e-commerce platform's shares continue trading significantly above their ₹111.00 issue price, though they have retreated from their post-listing peak of ₹254.00. Meesho made its stock market debut on December 10, 2024, listing at a premium and closing 53% above the IPO price on the first trading day. The company's three-day IPO, with an issue size exceeding ₹5,000.00 crore, attracted healthy subscription from both institutional and retail investors.

Tata Capital's Three-Month Lock-in Expires

Tata Capital, recognized as the largest IPO of 2025, simultaneously experiences the conclusion of its three-month shareholder lock-in period. The financial services company's lock-in expiry affects a significant portion of its equity base.

After trading within a narrow range for most of the past three months, Tata Capital shares have demonstrated upward momentum over the past two weeks, including a gain exceeding 6% on the previous Friday. The stock now trades 11% above its ₹326.00 issue price, reflecting improved market sentiment.

Analyst Sentiment and Market Reception

Tata Capital enjoys unanimous support from the analyst community, with all seven analysts tracking the stock maintaining 'Buy' ratings. Price targets reach as high as ₹410.00, suggesting significant upside potential from current levels. The company's ₹15,000.00 crore-plus IPO achieved full subscription by the close of bidding, with the stock debuting around its issue price and maintaining relatively stable trading patterns thereafter.

Additional Lock-in Expirations

Beyond the two major companies, several other recently listed entities also experience lock-in period conclusions. Aequs will see 16.7 million shares, representing 2% of its outstanding equity and worth approximately ₹230.00 crore, become eligible for trading. The company currently trades 10% above its IPO price, indicating positive market reception.

Vidya Wires faces a different scenario, with 8.7 million shares (4% of outstanding equity) worth about ₹44.00 crore coming out of lock-in. However, the stock trades 4% below its issue price, reflecting more subdued market performance.

Market Impact Considerations

The conclusion of shareholder lock-in periods represents a technical milestone rather than a guarantee of immediate market activity. While these shares become eligible for trading, the actual decision to sell remains with individual shareholders. Market participants will closely monitor trading volumes and price movements to assess whether significant portions of the unlocked shares enter the market, potentially affecting supply-demand dynamics for these securities.

UBS Securities has initiated analyst coverage on Meesho Limited with a buy recommendation, establishing a target price of ₹220 per share for the e-commerce platform.

Analyst Recommendation Details

The investment bank's initiation of coverage reflects its assessment of Meesho Limited's business fundamentals and market positioning. UBS has assigned a buy rating to the stock, indicating the firm's expectation that the shares may outperform relative to its broader coverage universe.

Investment Outlook

The ₹220 target price established by UBS represents the firm's assessment of Meesho Limited's fair value based on its analytical framework. Buy recommendations typically suggest that analysts expect the stock to potentially deliver positive returns and outperform benchmark indices or peer companies over the investment horizon.

Market Implications

The initiation of coverage by UBS Securities adds to the research universe covering Meesho Limited, providing investors with additional analytical perspective on the e-commerce company's investment merits. Analyst coverage from major investment banks often enhances market visibility and may influence institutional investor interest in the stock.

This positive analyst sentiment on Meesho Limited, as reflected in UBS's buy recommendation, suggests confidence in the company's business model and growth prospects within the e-commerce sector.