IPO Lock-in Expiries to Unlock Shares Worth $2.3 Billion in September

India's market is heading into a busy month for IPO lock-in expiries, with shares of 38 recently listed companies set to become eligible for trading during September, according to data compiled by Nuvama Alternative & Quantitative Research.

Nuvama estimates that lock-in expiries across 28 companies between 2 September and 30 September will make nearly 575 million shares eligible for trading. The shares have a combined value of around $2.3 billion.

The brokerage noted that the figure represents the total number of shares being released from lock-in restrictions. However, it added that a significant portion of these shares is held by promoters and group entities, meaning the entire block may not necessarily come into the market for sale.

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During the first week of September, shares of five companies are set to be unlocked for trading. These include Manipal Health Enterprises, Juniper Green Energy, MV ElectroSystems, PNGS Reva Diamond Jewellery and Omnitech Engineering.

Among the one-month lock-in expiries, Manipal Health Enterprises will see 35 million shares become eligible for sale on 2 September. The unlocked shares represent 3% of the company's outstanding equity and are valued at around $286 million. The stock is currently trading 31% above its issue price and 16% higher than its listing close.

Dhoot Transmission is also scheduled for a lock-in expiry during the month. On 15 September, an additional 5 million shares, equivalent to 3% of its outstanding equity and valued at nearly $80 million, will become available for trading. The stock has risen 67% from its issue price and is up 23% from its listing-day close.

A larger volume of shares is expected to enter the eligible trading pool from companies approaching six-month or longer lock-in expiries. SEDEMAC Mechatronics is set to unlock 17 million shares on 10 September. These shares account for 38% of the company's outstanding equity and are valued at around $525 million. The stock has gained 123% from its issue price and is trading 108% above its listing close.

GSP Crop Science will see 25 million shares become eligible for trading on 25 September. The shares account for 53% of its outstanding equity and carry an estimated value of around $162 million. The stock has advanced 96% from its issue price and 76% from its listing close.

Saatvik Green Energy is another company facing a sizeable lock-in expiry. On 28 September, about 57 million shares representing 45% of outstanding equity are scheduled to be unlocked. The shares are valued at roughly $253 million. Unlike some of the other companies in the list, the stock is currently below its issue price, trading 9% lower than the issue price and 4% below its listing close.