Dalal Street Prepares for $20 Billion IPO Lock-in Expiries Over the Coming Quarter

India’s stock markets are bracing for a wave of IPO lock-in expiries over the next three months, with nearly $20 billion worth of shares becoming eligible for trading. This development is expected to influence market dynamics significantly.

High-Profile Unlocks Set to Influence Sentiment

From August 25 to November 27, at least 57 companies are slated to have their pre-listing restrictions lifted, as per data from Nuvama Institutional Equities. While not all unlocking shares are likely to enter the market immediately, many promoters tend to hold on—the increased availability may spark notable activity in selected counters.

Among the major upcoming unlocks, Ather Energy stands out with a substantial release of 162 million shares—about 44% of its total equity—on November 6, potentially one of the most consequential single-day events. Other companies lined up for unlocks include GNG Electronics, Brigade Hotel Ventures, Aditya Infotech, Sri Lotus Developers, JSW Cement, HDB Financial Services, Anthem Biosciences, Travel Food Services, BlueStone Jewellery, M & B Engineering, and Kalpataru.

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Market Implications and Risk Considerations

Although the expiry of lock-ins is a routine part of the IPO lifecycle, the concentration of multiple high-value unlocks could put short-term pressure on stock prices, even in cases where the fundamentals remain sound. Market watchers point out that the real impact will depend on how much of this newly unlocked equity flows into the secondary market rather than staying with existing shareholders.

Analysts caution that continued selling by foreign institutional investors (FIIs), combined with ample newly available supply, could exacerbate downward pressure on prices. Conversely, a stable or improving global environment—such as the possibility of US rate cuts—could help absorb this supply with less volatility.

Conclusion

As Dalal Street braces for a flood of IPO lock-in expiries, markets may face heightened volatility in the weeks ahead. While these unlocking events are standard, the sheer scale and overlapping schedule make this period particularly noteworthy. The actual impact will depend on the willingness of holders to liquidate their stakes, FII behaviour, and global macroeconomic trends that could either cushion or amplify the fallout.