Dalal Street Braces For $70 Billion IPO Unlock Wave

Dalal Street is set to witness a wave of initial public offering (IPO) lock-in expiries over the next three months, with shares worth nearly $70 billion becoming eligible for trading, as per brokerages. As per estimates, 81 companies will see pre-listing shareholder restrictions end between 7 April and 31 July. These shares include holdings of early investors and insiders that were locked in after listing.

The figure reflects the total value of shares that can be traded once restrictions end. However, not all of it is expected to hit the market. This is because promoter groups usually continue to hold a large portion of their stakes.

Lock-in Expiries In April

Several companies are lined up for lock-in expiries in April, including:

• Bharat Coking Coal: 59 million shares (1%) on 15 April

• Amagi Media Labs: 11 million shares (5%) on 20 April

• Shadowfax Technologies: 35 million shares (6%) on April 23

These expiries mark the end of the three-month lock-in period for certain shareholders.

May Sees Broader Activity

Activity picks up further in May, with multiple firms scheduled for unlocks, including:

• Fractal Analytics: 7 million shares (4%) on 13 May

• Aye Finance: 18 million shares (7%) on 13 May

• Gaudium IVF and Women Health: 3 million shares (4%) on 26 May

• Clean Max Enviro Energy Solutions: 4 million shares (4%) on 27 May

• PNGS Reva Diamond Jewellery: 2 million shares (7%) on 29 May

June Pipeline Remains Active

Unlocks in June include:

• Omnitech Engineering: 4 million shares (3%) on 1 June

• SEDEMAC Mechatronics: 1 million shares (3%) on 8 June

Large Six-Month Lock-in Expiries Ahead

A separate set of companies will see six-month lock-in periods end, involving larger share volumes. These include:

• Tata Capital: 2,858 million shares (67%) on 13 April

• WeWork India: 60 million shares (45%) on 13 April

• LG Electronics India: 441 million shares (65%) on 15 April

• Canara Robeco AMC: 110 million shares (55%) on 17 April

• Canara HSBC Life Insurance: 522 million shares (55%) on 20 April

• Midwest: 6 million shares (17%) on 24 April

• Capillary Technologies: 0.5 million shares (0.7%) on 28 April

• Tenneco Clean Air India: 3 million shares (0.8%) on 30 April

• Lenskart Solutions: 1,047 million shares (60%) on 8 May

• Emmvee Photovoltaic Power: 5 million shares (0.7%) on 8 May

• Aequs: 1 million shares (0.2%) on 11 May

• Billionbrains Garage Ventures: 4,182 million shares (68%) on 12 May

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Market Impact Hinges On Selling Activity

Brokerages said lock-in expiries are a routine part of the IPO cycle. However, clustered unlocks of this scale tend to draw attention and may weigh on stock prices in the near term. They added that the actual impact will depend on how many of the eligible shares are sold in the secondary market.

Sources:

The Economic Times

IPO India