Dalal Street is bracing for a significant wave of IPO lock-in expiries, with 67 companies scheduled to see shareholder restrictions lift between September 24 and December 31. This event could potentially release shares worth Rs 2,000 crore into the market, presenting both opportunities and challenges for investors.

Key Highlights

• A total of 67 companies will experience IPO lock-in expiries in the coming quarter.
• The estimated value of shares becoming tradable is around Rs 2,000 crore.
• The expiry period spans from September 24 to December 31.

Notable Expiries

1. HDB Financial Services: Leading the pack with 23 million shares set to become tradable on September 29.
2. Urban Company: Following closely with 41 million shares unlocking on October 16.
3. Ather Energy: Marking the most significant event in November, with 162 million shares (44% of outstanding stock) freeing up on November 6.

Other companies facing lock-in expiries include JSW Cement, Vikram Solar, NSDL, Kalpataru, Sambhv Steel Tubes, and Vikran Engineering.

Market Impact

While the volume of shares unlocking appears substantial, the actual impact on the market remains to be seen. Several factors will influence the effect of these expiries:

1. Selling Pressure: The extent of the impact depends on how much of the unlocked stock actually enters the market for sale.
2. Promoter Holdings: Typically, promoters tend to retain their holdings for longer periods, which could potentially cushion market volatility.
3. Investor Sentiment: The overall market conditions and investor appetite at the time of expiry will play a crucial role in determining the outcome.

Investor Considerations

As these lock-in periods expire, investors should:

• Monitor the specific dates for companies they're interested in or have invested in.
• Be prepared for potential increased volatility in the affected stocks.
• Consider the fundamentals and long-term prospects of companies beyond the lock-in expiry event.

The upcoming wave of IPO lock-in expiries presents a dynamic scenario for Dalal Street. While it introduces a significant volume of potentially tradable shares, the actual market impact will depend on various factors, including seller behavior and broader market conditions. Investors are advised to stay informed and approach these developments with a balanced perspective.

In a significant development for the Indian stock market, a wave of IPO lock-in periods is set to expire, potentially releasing shares worth nearly $20 billion for trading. According to a report by Nuvama Institutional Equities, 57 companies will see their IPO lock-in periods conclude between August 25 and November 27.

Lock-in Expiry Impact

While the total value of unlocking shares is substantial, it's important to note that not all of these shares may immediately enter the secondary market. Many promoters and groups might choose to retain their holdings, at least initially.

Categorized Expiries

The report categorizes the upcoming unlocks into different timeframes:

One-Month Expiries

Notable companies in this category include:

• JSW Cement: 37.00 million shares
• Brigade Hotel Ventures: 18.00 million shares
• BlueStone Jewellery: 7.00 million shares

Three-Month Expiries

This category features similar companies with additional share unlocks.

Six-Month Expiries

The most significant unlocks in this timeframe are:

• Ather Energy: 162.00 million shares (44% of outstanding shares)
• Borana Weaves: 3.00 million shares (10% of outstanding shares)

Comprehensive Analysis

Nuvama's analysis covers both promoter and non-promoter holdings for businesses listed up to August 20. The report spans multiple sectors, providing a broad view of the potential market impact.

Market Implications

The expiry of these lock-in periods could introduce increased liquidity in the affected stocks. However, the actual impact on share prices and trading volumes will depend on various factors, including the overall market conditions and the decisions of major shareholders.

Investor Considerations

For investors, this presents both opportunities and challenges. While increased liquidity can be beneficial, it may also lead to short-term price volatility in some stocks. Market participants will be closely watching how the newly freed-up shares are managed by their holders.

As the lock-in expiries approach, market analysts and investors alike will be keenly observing the strategies employed by the companies and major shareholders involved. The coming months could see interesting dynamics in the Indian stock market, particularly in the sectors and stocks affected by these lock-in expirations.