From Tata Capital to Meesho: ₹13,763 Crore IPO Share Unlocks This Week

The Indian market is set for a massive liquidity event in the coming week as the lock-in periods of 14 newly listed companies are to expire. Once the lock-in periods expire, the shares of these newly listed firms worth ₹13,763 crore will be injected into the market, resulting in the creation of volatility. Tata Capital, Meesho, and other prominent names of 2025, will be tested in the liquidity event.
For active traders, this is a crucial event. After the expiration of pre-IPO lock-ins, the early investors, promoters, private equity investors, anchor investors, receive the signal to sell their shares. Although there may not be a stampede, the possibility of increased supply is enough to create price movements.

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The Heavy Weights: Tata Capital and Meesho

Wednesday, January 7th, is proving to be a crucial day for two big players in the markets. Tata Capital is set to witness perhaps the largest IPO of 2025, as approximately 71.2 million shares will unlock in this public offering, valued at around ₹2,573 crores. Since listing, it has had a volatile ride, that is to say, it has simply cruised along sideways for several months, finally breaching above the listing price in recent times. The tech analyst community will wonder if this fresh influx of shares can absorb without denting the support lines established throughout the sideway movement.
Meanwhile, Meesho is set to face a similar challenge on the same day. The giant in the online business space is set to witness the unlocking of around 109.9 million shares, or around 2% of the equity capital with a lock-in period of one month, valued at about ₹1,973 crores. Unlike Tata Capital, Meesho’s listing seems to be quite healthy with an appreciation of around 60% from the listing exercise with a slight retracement from the highs, thereby introducing an additional pressure factor as the first investors may trigger unloading of the shares.

LG Electronics and WeWork India Enter the Unlock Week

A busy schedule is maintained in the calendar. On Tuesday, January 6, there was a significant unlocking of 8% equity in the WeWork India business valued at ₹637 crore. The stock is trading below the IPO level, which usually weakens aggressive selling, as the initial proponents may feel reluctant to sell at a loss.

In fact, just then on Thursday, January 8, for LG Electronics India to have around 15.2 million shares valued at ₹2,252 crores available for trading would not be uncommon. The shares have posted strong gains since listing on the markets but have not touched their recent highs. This unlock will attract attention to perceive whether it turns out to be a capitulation level or not.

Small Caps, Big Footprint

While the headline stocks are grabbing all the attention, the action may be simmering in the smaller stocks. The stocks set for listing this week are Sambhv Steel Tubes, Globe Civil Projects, Crizac, and Bansal Wire Industries. In some of these, more than 50 percent of the total stake is likely to be unlocked for trading.
A dramatic increase in the free float in more illiquid stocks could trigger volatile pricing. A lack of strong demand could cause spreads to blow out and prices to fall sharply in response to relatively weak selling demand.

Supply Zones and Support

When the market is not ready to handle the additional stocks, prices generally drift to a certain region where market buyers regain control.
Absorption: When the stock does not move much or makes a new high when unlocked, it is a strong institutional buy interest, which is largely a bullish sign for the medium term.
Correction: A sharp drop-off occurs, but it's more likely to be seen as a type of clearing phase, where the looming selling impact is cleared and a more definitive trend emerges.