Shares of at least 45 recently listed companies are set to become eligible for trading over the next two months as post-IPO lock-in periods expire, potentially adding to the supply of shares. According to data compiled by Nuvama Alternative & Quantitative Research, shares worth around $7.6 billion are set to be unlocked between August 12 and September-end. The expiry of lock-ins allows promoters, anchor investors and other pre-IPO shareholders to sell their holdings, but need not translate into immediate share sales.
From August 12 to the end of August, additional shares of 19 companies are scheduled to become eligible for trading. The largest unlocks by value include JSW Cement ($848 million), Fractal Analytics ($745 million), Shreeji Shipping Global ($731 million), Hexaware Technologies ($718 million), Clean Max Enviro Energy Solutions ($470 million), Aye Finance ($260 million), Vikram Solar ($211 million), and SBI Funds Management ($139 million). Other companies scheduled for unlock include Ajax Engineering, Indo-MIM, All Time Plastics, Mangal Electrical Industries, and Gem Aromatics.
In September, 26 more companies will see their lock-ins expire, with the largest unlock being JSW Infrastructure ($1.48 billion). Other significant unlocks include SEDEMAC Mechatronics ($489 million), Saatvik Green Energy ($254 million), Manipal Health Enterprises ($250 million), and GSP Crop Science ($155 million). Companies such as Rajputana Stainless, Rishabh Instruments, Omnitech Engineering, Upiter Lifeline Hospital, VMS TMT, Shree Ram Twister, Anlon Healthcare, Sedemac Mechatronics, Dev Accelerator, and Jupiter Lifeline Hospital are also scheduled for unlocks in September.
While the prospect of unlocked shares could weigh on stock prices in the near term, the event doesn't guarantee immediate selling pressure. As reported by The Economic Times, the unlocking gives promoters and anchor investors the chance to divest their previously locked holdings, though this doesn't necessarily translate into share sales. Market expert Abhilash Pagaria, Head - Nuvama Alternative & Quant Research, noted that stocks with over 6-month lock-in openings are particularly attractive, as this is where PE and early-investor overhang starts to ease, public float rises, and the probability of global index inclusion improves.
