Lock-Ins On Pre-IPO Shares Across 87 Companies Are Soon Expiring

The shares held by early investors in 87 companies are set to come out of lock-in over the next few months. With a combined value of $69 billion, these holdings are drawing fresh focus on how the market may react.

Once the restriction ends, those investors can sell their holdings in the open market if they choose to. That possibility often raises questions around supply, price pressure, and near-term market sentiment. But will all these shares actually come into the market at the same time?

Why Are $69 Billion Worth Of Pre-IPO Shares Set To Unlock Soon?

Mandatory lock-in periods on pre-IPO shares worth about $69 billion are scheduled to end over the next three months. According to Nuvama Alternative & Quantitative Research, this applies to shares across 87 listed companies.

The upcoming lock-in expiries are spread across companies of very different sizes, with both smaller and larger blocks becoming eligible for trading over the next few months. Some of the early releases already visible in the market include:

• ICICI Prudential Asset Management Company: Around 70 lakh shares, equivalent to 1% of equity

• KSH International and Gujarat Kidney and Super Speciality: Both companies will free up about 4% to 6% of their equity later this month.

• Gaudium IVF and Women's Health: Nearly 30 lakh shares making up to about 4% of the company’s equity.

• Urban Company: 94.1 crore shares, accounting for nearly 66% of equity.

• GK Energy: 65% of equity with 13.1 crore shares.

• Euro Pratik Sales: 6.3 crore shares, equal to 62% of equity.

These shares are currently held by promoters, venture capital funds, private equity investors and other early backers who entered before the public issue. Once the lock-in period ends, they are free to reduce holdings through open market transactions if they choose.

Even so, analysts do not expect the entire eligible quantity to reach the market immediately. Lock-in expiry only opens the window for sale; it does not force investors to exit. In practice, many early shareholders stagger their sales, wait for more favourable valuations, or continue holding if they remain positive on the company’s longer-term prospects.

Why Is There A Lock-In For Pre-IPO Shares?

The lock-in matters because it does not automatically open the exit door for every shareholder.

Promoters, institutional investors, and employees are other early investors who owned shares before the IPO are restricted from selling their holdings until the expiry of the lock-in. This keeps a large block of shares from entering the market too early.

In practical terms, it gives the stock some time to settle before more supply becomes available.

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What Should Retail Investors Watch As These Lock-Ins Expire?

For retail investors, the bigger cue comes after the lock-in ends rather than from the size of the eligible shares alone.

A stock can face near-term pressure if early shareholders begin trimming positions, especially where the market float is still narrow. At the same time, the absence of strong selling is often read positively, as it suggests existing investors are not in a hurry to exit, as they are optimistic about the company’s growth.

Changes usually become visible through block deals, updated shareholding data or unusual trading activity around expiry dates. Even then, once the immediate reaction settles, earnings performance and valuations tend to carry more weight.

Sources:

Economic Times

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