Impending Lock-In Expiries: $34 Billion Worth of IPO Shares Set to Hit the Market
IPO investors brace for 73 lock-in expiries worth $34 billion in three months. Will your portfolio be impacted?
Image: The Economic Times
Over the next three months, 73 newly listed Indian companies will see shares worth $34 billion become eligible for trading as their lock-in periods expire. Significant expiries include those of companies like Meesho and Omnitech Engineering. However, not all shares will be sold immediately, as many are held by promoters.
- 01The first lock-in expiries will begin on May 20, 2025, with companies like Emmvee Photovoltaic Power and Capillary Technologies.
- 02Meesho will have over 308 crore shares worth more than $6 billion eligible for trade after its lock-in period ends.
- 03Major expiries in June include Omnitech Engineering and Belrise Industries, with shares valued at $16 million and over $1 billion, respectively.
- 04Nuvama Alternative & Quantitative Research notes that not all shares will be sold immediately, as many are held by promoters.
- 05The total value of shares eligible for trade represents the potential market impact but does not guarantee immediate selling.
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The Indian stock market is preparing for a significant influx of shares as 73 companies will see lock-in expiries worth $34 billion over the next three months. The first set of expiries starts on May 20, 2025, with shares from Emmvee Photovoltaic Power, Fujiyama Power Systems, and Capillary Technologies becoming available for trade. Following this, several other companies, including Gaudium IVF and Clean Max Enviro Energy Solutions, will also have shares freed up. Notably, Meesho will have over 308 crore shares, valued at more than $6 billion, eligible for trading after its lock-in period ends. The expiries will continue into June, with significant stocks like Omnitech Engineering and Belrise Industries also becoming available. Despite the large total value of shares set to hit the market, Nuvama emphasizes that not all shares will be sold immediately, as a substantial portion is held by promoters and their groups. Investors are advised to monitor these developments closely as they could impact market dynamics.
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The influx of shares from lock-in expiries could lead to increased volatility in the Indian stock market, affecting investor portfolios.
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