Indian stock market faces $45 billion IPO lock-in expiries over next four months; volatility risk flagged

Indian stock market is set to brace for volatility as IPO lock-in expiries worth nearly $45 billion are scheduled to open over the coming months, with several recently listed companies set to witness the lifting of pre-listing shareholder restrictions, according to a report by Nuvama.

Simply put, a lock-in period refers to a fixed duration after listing during which pre-IPO shareholders, including promoters and early investors, are prohibited from selling their shares. Once the lock-in expires, these shareholders are permitted to offload their holdings, increasing the free float and potentially triggering short-term price movements.

This is important, as these events will increase near-term supply and exert pressure on stock prices, particularly in cases where a large volume of shares is released at once.

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The report said that between January 6, 2026 and April 30, 2026, a total of 96 companies will see their pre-listing shareholder lock-in periods come to an end. The $45 billion figure represents the cumulative value of shares whose lock-in restrictions will expire during this period.

However, Nuvama noted that not all these shares are expected to be sold in the open market, as a significant portion continues to be held by promoters and promoter group entities.

The analysis covers both promoter and non-promoter shareholders and includes companies listed up to January 4, 2026. Nuvama cautioned that lock-in expiries are closely watched by investors, as a sudden rise in share supply can lead to temporary volatility, particularly if multiple early investors choose to book profits simultaneously.

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In the near term, several companies are set to see lock-in expiries within the next month. On January 7, Meesho will have 2 million shares—around 2 per cent of its outstanding equity—coming out of lock-in. This will be followed on January 12 by CORONA Remedies, where 0.9 million shares (2 per cent) will be unlocked, and Wakefit Innovations, which will see 15 million shares, or 5 per cent, become eligible for trading.

On January 14, lock-in expiries are scheduled for Park Medi World involving 9 million shares, or 2 per cent, as well as Nephrocare Health Services, where 3 million shares, or 3 per cent, will be unlocked. ICICI Prudential AMC will see 7 million shares, or 1 per cent, come out of lock-in on January 16, followed by KSH International on January 19 with 3 million shares, or 4 per cent. Gujarat Kidney & Super Speciality is scheduled to see 4 million shares become eligible for trading on January 27.