The upcoming April-May period is set to be flooded with anchor lock-in expiries that are slated to free up shares worth over Rs 2.36 lakh crore for trading. Locked in shares of as many as 22 recently listed companies, including major names such as Hyundai Motor India, Dr Agarwal's Health Care, Swiggy, and Waaree Energies, are set to become eligible for trading in the April-May as anchor investors reach the end of their lock-in periods.
The anchor lock in expiries of these company may spur increased market activity and potential sell-offs, if investors choose to offload stakes and book profits.
The anchor lock-in expiry marks the end of the mandatory holding period for institutional investors who participated in an initial public offering (IPO). Once this period concludes, these investors are permitted to sell their shares in the open market, increasing the tradable float, making way for stake sales and its potential impact on stock prices.
However, while the total value of shares becoming eligible for sale stands at Rs 2.36 lakh crore, it is worth noting that not all of these shares will necessarily be sold, but rather would be eligible to sell if the holding party decides to do so. A significant chunk of these shares is held by promoters and their group entities, that may choose to retain their holdings.
According to data compiled by Nuvama Alternative & Quantitative Research, the companies with upcoming anchor expiries include Denta Water & Infra, Ajax Engineering, Diffusion Engineers, Niva Bupa Health Insurance, Godavari Biorefineries, Hariom Pipe, Deepak Builders & Engineers, Blue Jet Health, Afcons Infrastructure, Honasa Consumer, Rainbow Children’s Medicare, Cello World, Sagility India, ESAF Small Finance Bank, ACME Solar Holdings, ASK Automotive, among others.
Stallion India Fluorochemicals, Denta Water & Infra, Dr Agarwal's Health Care, and Ajax Engineering will see the end of their three-month lock-in periods, with shares estimated to be valued at around Rs 659.65 crore. Meanwhile, the rest of the companies will witness expiries of six-month or longer lock-in periods.
However, the most prominent name that pops up on the list is Hyundai Motor India, which staged India's largest public offering in October 2024, raising Rs 27,870 crore. With the lock-in period nearing its end, 50.78 crore equity shares, valued at around Rs 81,821.65 crore, will become eligible for trading, making it the largest expiry in value terms during this April-May cycle.
