Dalal Street Braces for $20 Billion IPO Lock-In Expiries

Dalal Street is heading into a heavy season of IPO lock-in expiries, with shareholder restrictions set to unwind across multiple sectors in the coming months. According to Nuvama Institutional Equities, as many as 57 companies will see their lock-ins expire between August 25 and November 27, releasing close to $20 billion worth of stock into the market.

Key Expiries in Focus

• August: Early unlocks from companies such as GNG Electronics, Brigade Hotel Ventures, Aditya Infotech, and Sri Lotus Developers.

• September: Major names like JSW Cement (37 million shares) and HDB Financial Services (23 million shares).

• October: Unlocks from Anthem Biosciences and Travel Food Services.

• November: The most eye-catching event is Ather Energy, with 162 million shares (44% of outstanding stock) becoming tradable on November 6. BlueStone Jewellery, Kalpataru, and others will follow later in the month.

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Market Impact

While not all unlocked shares are expected to immediately hit the secondary market, brokers and investors are bracing for heightened trading activity. Large unlocks, especially from high-profile companies, may create short-term pressure on stock prices, even if fundamentals remain stable.

Market Insights

• Promoter groups often hold longer, which may soften the actual impact despite the $20 billion headline figure.

• The unlocks coincide with a period when foreign institutional investors (FIIs) have turned cautious due to high valuations.

• If FII selling continues, additional supply could weigh on certain counters.

• On the other hand, a benign global backdrop and possible US rate cuts may help absorb the supply smoothly.

Ather Energy’s massive unlock in November stands out as one of the biggest market events this quarter, making it a date investors will closely track.

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