The Indian stock market is poised to witness a wave of tradable shares hitting the market as shareholder lock-in periods for several companies come to an end in the coming months. According to a recent research note by Nuvama Alternative and Quantitative Research, 970.8 crore shares across 58 companies, valued at approximately $26 billion, will become eligible for trading by July 2025.

This unlocking could have significant implications for the market, especially for the stocks involved, including Sagility India, Swiggy, Niva Bupa Health, and several more.

What is a Shareholder Lock-In Period?

A lock-in period is a mandatory duration during which pre-IPO shareholders such as promoters, employees, and early investors are not allowed to sell their shares in the public market. These restrictions are typically enforced to ensure market stability after a company gets listed. Once this period ends, the shares are freed up and can be sold, leading to potential changes in stock price depending on the market sentiment and supply-demand dynamics.

Key Highlights from Nuvama’s Note

According to the detailed breakdown:

• Sagility India tops the list with 304.3 crore shares (65% of its outstanding equity) becoming eligible for trade on May 12, 2025.

• Swiggy follows closely, with 189.8 crore shares (85% of its total equity) becoming tradable on May 13, 2025.

• Other key companies include Niva Bupa Health, Afcons Infrastructure, Zinka Logistics, and Dr. Agarwal's Health Care.

This release of shares could potentially impact stock performance, especially for companies where a large percentage of outstanding equity is being unlocked.

List of Notable Unlockings in May 2025

Here’s a snapshot of the key companies whose lock-in periods expire in May 2025, along with the volume of shares that will be freed:

Other Companies with Upcoming Unlocks

While May is packed with high-value unlocking events, June and July will also witness significant developments:

• Mobikwik will see 3.8 crore shares unlocked in June.

• Aadhar Housing Finance, Tata Technologies, and Vishal Mega Mart are some of the other notable names with lock-in expiries on the horizon.

• Companies like Sai Life Sciences, Inventurus Knowledge Solutions, and Standard Glass Lining Tech are also expected to see unlocks in the near term.

What Does This Mean for Investors?

It’s important to understand that shares becoming eligible for trade does not automatically mean they will be sold. However, such events often result in increased market speculation and possible volatility in the concerned stocks.

Implications for Stock Prices

• A large volume of shares becoming tradable can increase supply, potentially putting pressure on the stock price if demand doesn’t match.

• However, if investor confidence is high, this unlocking may have minimal impact or may even boost liquidity.

Strategic Considerations

• Retail investors should keep an eye on stocks with large lock-in expiries, especially when the unlocked shares constitute a majority of the company’s equity.

• Institutions and large funds may choose to offload or hold, depending on broader market conditions and the company’s fundamentals.

Spotlight on Swiggy and Sagility India

Among all companies, Swiggy and Sagility India are in the limelight due to the massive volume of shares unlocking.

Swiggy

• With 189.8 crore shares (or 85% of total equity) becoming eligible for trading, Swiggy is one of the largest unlocking events in recent times.

• This comes after Swiggy's anticipated IPO, and could be a key test of investor sentiment towards the food delivery sector.

Sagility India

• The unlocking of 304 crore shares, representing 65% of equity, could lead to sharp movements in the stock.

• Market watchers will be observing insider activity and trading volumes closely.

Why This Trend Matters

This wave of share unlockings provides a unique opportunity to understand post-IPO market dynamics. For companies with significant institutional backing, this may offer a chance for price discovery and increased liquidity. For others, it may be a critical juncture for investor confidence and future fundraising efforts.

Final Words: Should You Worry?

While such large unlockings can be a red flag for potential volatility, they don’t necessarily spell doom for a stock. Much depends on the demand side of the market, and how the company is perceived in terms of future growth and stability.

For investors, this is a good time to review their holdings in these companies, track institutional activity, and stay informed through earnings reports, management commentary, and market sentiment.

The Current active IPO are Srigee DLM, Manoj Jewellers, Wagons Learning, Kenrik Industries.

The Closed IPOs are  Arunaya Organic, Ather Energy, Iware Supplychain Services.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.