Tata Tech, IREDA and 64 other stocks to see lock-ins expire in Q1 FY25

• Shareholder lock-ins of 66 companies are slated to expire between April and June.
• The cumulative value of stocks that will see lock-ins expire is estimated at $17.7 billion.
• Anchor investors, promoters and non-promoters have different lock-in periods as per regulations.
  

The IPO boom of 2023 means the current year will see many newly listed stocks coming out of their mandated lock-in periods. As per a report by Nuvama, per-listed shareholder lock-ins of 66 companies are slated to expire between April and June of this year.

“It amounts to a value of $17.7 billion. The value pertains to the total lock-up opening shares, but it’s important to note that not all of these shares will come for sale as a sizable portion of these shares are also held by promoter & group,” said Nuvama Institutional Equities.

Some of the best-performing and investor-rewarding new listings that will see lock-ins expire include – Tata Technologies, IREDA, Doms, Cello World and more.

How do lock-ins work?

While public shareholders of a company can sell their stock anytime in the market, after they are listed, the rules are different for other classes of investors. As per regulations, anchor investors — who invest ahead of opening an issue to the public — must wait for 30 days or one month from the allotment date to sell half of their shares in the public market. The rest can be sold after 90 days or three months.

Promoters and other shareholders have different lock-in expiry rules. Promoters can sell their shares to the tune of 20% of the post-issue paid-up in the open market after 18 months. For other non-promoters, the lock-in ends in six months.

Bharat Highways Invit’s 19% stake lock-in

In the month of April, eight companies’ one-month lock-ins will expire including — Platinum Industries, J G Chemicals, Popular Vehicles and Services, Exicom Telesystems, R K Swamy, Gopal Snacks and Krystal Integrated Services. Each of these has anywhere between 2% to 6% of their shares open for sale.

But Bharat Highways Invit will see 19% of its lock-in expiring bringing out as much as 82.6 million shares out into the market.

In general, the volatility around a stock goes up when lock-in periods end. The other stocks that will see their three-month lock-ins open in April would be — Mukka Proteins, Jyoti CNC Auto, Epack Durables, Medi Assist Healthcare and Nova Agritech.

May to see the ‘chunkiest of lock-in openings’

Since a lot of IPOs were launched in the last three months of 2023, the summer of May will see the chunkiest of lock-ins opening. That includes 65% shares of mega IPOs like Tata Technologies; 55% of government-owned IREDA, 10% of DOMS and 49% of Honasa Consumer.

The other companies Cello World, Flair Writing, Inox India, Gandhar Oil, JSW Infra, Muthoot MicroFin, Motisons Jewelers, RBZ Jewelers and more,

Some of the older stocks that will see lock-in expiries (beyond one year and more) include — Bikaji Foods, Global Health, Abans Holding, Keystone Realtors, Radiant Cash Management and more.

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