IPO Lock-In Expiry Set to Unlock $18.8 Billion in Shares for Bajaj Housing, Ola Electric, and 41 Other Companies

A total of 43 companies will have their pre-IPO lock-in periods expire between October 8 and December 31, 2024, according to a report by Nuvama Alternative & Quantitative Research. This will unlock shares worth $18.8 billion, allowing certain shareholders to sell their previously restricted shares.

However, not all of these shares will be sold immediately, as many are held by promoters and group entities who might retain them. The report includes data for companies listed until October 4.

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What is an IPO Lock-In Period?

An IPO lock-in period is a time frame during which specific investors are not allowed to sell their shares. These rules help keep the stock price stable and allow the company time to settle in the market after going public. Lock-in periods differ for promoters, anchor investors, and other shareholder groups.

Companies Facing Lock-In Expiry

• 1-Month Lock-In Expiry: Between October 10 and October 31, companies like Bajaj Housing Finance, Shree Tirupati Balajee, Tolins Tyres, and Kross will have their lock-in periods end. Bajaj Housing Finance has the most significant release, with 126 million shares unlocking.
• 3-Month Lock-In Expiry: A total of 23 companies, including Ola Electric Mobility, Akums Drugs and Pharma, and Sanstar, will see their shares unlocked over the next three months.
• 5- and 6-Month Lock-In Expiry: Companies like Bharti Hexacom, Indegene, and Aadhar Housing Finance will have their shares unlocked from October 11 to December 30.
• 1-Year and Beyond Lock-In Expiry: Firms like IRM Energy, Flair Writing Industries, and Azad Engineering will see their shares unlocked after one year.

Looking Ahead

The unlocking of these shares could impact stock prices, depending on how much selling occurs. However, many large shareholders, including promoters, may choose to hold onto their shares for the long term.