Impending $34 Billion Lock-in Expiries: How 73 IPOs in Three Months Could Impact Your Investment Portfolio!

The Indian stock market is poised for significant activity as it approaches a wave of IPO lock-in expiries over the next three months. A total of 73 companies that recently entered the public market will see shares worth approximately $34 billion becoming eligible for trading as their mandatory lock-in periods end. Notably, the first batch of expiries will kick off on May 20, involving firms such as Emmvee Photovoltaic Power, Fujiyama Power Systems, and Capillary Technologies. These companies will transition from six-month lock-in restrictions, which were set post their listings in November 2025, paving the way for potential liquidity in the market.

The market sentiment surrounding these lock-in expiries could be closely monitored, particularly in the grey market where traders speculate on the potential performance of these stocks once they are available for trading. Although many of these stocks may become eligible for sale, it is crucial to note that not all shares will necessarily flood the market. A substantial portion remains under the control of promoters and institutional investors, who may choose to hold their positions despite the expiration of trading restrictions. This aspect might temper the anticipated volatility, suggesting a more measured approach from retail investors upon opening.

For Indian investors, this wave of lock-in expiries presents both opportunities and challenges. While the anticipation of increased liquidity could spark renewed interest in certain stocks, especially those that previously performed well at their market debut, investors should exercise caution. Companies such as Meesho, which initially surged to a high before retreating, serve as a reminder of the inherent risks involved. Hence, investors are advised to conduct thorough research and approach each stock with a strategic mindset, considering the broader implications of liquidity in the market and the long-term potential of these companies post-lock-in expiry.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)