₹25,000 Crore Lock-Up Expiry Looms: Investor Watchlist Grows

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AuthorIshaan Verma|Published at:
₹25,000 Crore Lock-Up Expiry Looms: Investor Watchlist Grows
Overview

Five companies are set to see their lock-in periods expire this week, freeing up nearly ₹25,000 crore worth of shares for trading. Midwest Ltd. shares are trading significantly above their IPO price, but most others, including Anthem Biosciences, KSH International, Capital Infra Trust, and Laxmi Dental, are currently trading below their respective issue prices. This situation could create downward pressure on their stock values as lock-up periods end.

Lock-Up Expiries Trigger Watch

The impending release of shares valued at approximately ₹25,000 crore presents a significant event for the market this week. Anthem Biosciences Ltd. accounts for the lion's share of this value, with 387.2 million shares, or 69% of its outstanding equity, becoming tradable on Thursday, January 22, 2025. These shares are valued at ₹23,619 crore. Despite this massive unlock, Anthem Biosciences stock is only trading 7% above its issue price of ₹570, suggesting limited immediate upside for pre-IPO investors and potential for selling.

Company-Specific Performance

Capital Infra Trust will see 74.7 million units, representing 27% of its outstanding equity, become available on Monday, January 19, 2025. The value stands at ₹552 crore, though the units trade 26% below their issue price of ₹100. KSH International follows on Monday with 2.8 million shares (4% of outstanding) worth ₹102.3 crore. Its shares are trading 5% below the ₹384 issue price.

Laxmi Dental faces a similar situation on Tuesday, January 20, 2025, with 7.1 million shares (13% of outstanding) unlocking, valued at ₹172.2 crore. The stock has seen a sharp decline, trading 43% below its ₹428 issue price over the past year.

Midwest Ltd. An Outlier

Midwest Ltd. is the exception, with 0.6 million shares (2% of outstanding) freeing up on Monday, January 19, 2025, valued at ₹85.62 crore. Importantly, Midwest shares are trading a substantial 34% above their IPO price of ₹1,065, indicating strong post-IPO performance and potentially less selling pressure from these newly freed shares.

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