Archive · 30 Jun 2025
IPO Lock-in Release May Cause Market Volatility in Four Months
Imagine companies selling their stock for the first time.
When this happens, there is a period where some of these stocks can't be resold, called a lock-in period.
Over the next few months, stocks worth a lot of money from recent company launches will become available to be bought and sold.
This is because their lock-in periods are ending.
This might cause some of the stocks to be sold, depending on how the market is doing.
The rules about how long the lock-in lasts depend on who owns the shares initially, like company founders or investors.
Experts are watching to see what will happen, especially for companies in the infrastructure industry.
₹1.29 lakh crore worth of shares from 57 recent IPOs will have their lock-in periods lifted in the next four months.
Market regulator SEBI mandates lock-in periods for promoters, non-promoters, and anchor investors, ranging from one to eighteen months.
Lock-in release may lead to partial sell-offs depending on market conditions.
Shares worth ₹3,623 crore from seven companies were unlocked on Monday, making nearly 112 million shares available for trading.
Infrastructure companies, dominant in the lock-in release list, may experience a stock price rally due to expected private capex growth.
- Who
- Investors, promoters, and companies that recently went public, along with market regulator SEBI.
- What
- Lock-in periods on shares from recent IPOs are being lifted, potentially leading to increased trading.
- When
- Over the next four months, with some shares already released on a Monday.
- Where
- The article focuses on the Indian stock market.
- Why
- Lock-in periods are expiring, potentially impacting stock prices and trading volume.
- Total value of unlocked shares
- ₹1.29 lakh crore
- Number of companies affected
- 57
- Lock-in period for promoters
- Up to 18 months
- Shares unlocked on Monday
- ₹3,623 crore
- Number of shares available on Monday
- Nearly 112 million
- Primary Category
- Economics