$45 billion worth of IPO lock-ins expiring over next few months; short-term volatility likely: Report

A massive $45 billion worth of IPO lock-in periods are set to expire between January 6 and April 30, affecting 96 newly listed companies, according to a Nuvama report. This means pre-IPO shareholders, including promoters and early investors, will be free to sell their shares in the open market, potentially causing short-term price movements.The report, cited by ANI, tracked all shareholders and companies listed up to January 4. While the total value of shares becoming free to trade is significant, not all shares are expected to be sold since many are held by company promoters and their group entities.Several companies will see their lock-in periods end in the coming month. Meesho leads the pack with 110 million shares (2% of total shares) becoming tradeable on January 7. On the same day, Aequs will have 17 million shares (2%) and Vidya Wires will have 9 million shares (4%) freed up for trading.The following weeks will see more companies reaching their lock-in expiry dates. Nephrocare Health Services will have two separate expiries- 2 million shares on January 9 and 3 million shares on January 14. CORONA Remedies and Wakefit Innovations will see their lock-ins expire on January 12, followed by Park Medi World on January 14.Later in January, ICICI Pru AMC will have 7 million shares (1%) released on January 16, KSH International will see 3 million shares (4%) become tradeable on January 19, and Gujarat Kidney & Super Speciality's lock-in will expire on January 27.Market experts suggested that investors should watch these dates carefully. When lock-ins expire, more shares become available for trading. If too many early investors decide to cash out simultaneously, it could temporarily push stock prices down. This makes lock-in expiry dates important for everyday investors who should be prepared for possible price changes during these periods.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)