A significant development is underway in the Indian stock market that may influence both investor sentiment and market trends. It involves the expiry of lock-in periods for shares held by anchor investors, making them eligible for trading in the coming months.
This development could enhance market liquidity but may also introduce volatility. Notably, the process began in July 2025, with shares of several major companies coming out of lock-in.
In this article, we analyse the event, explore its implications, and explain what it means for investors.
What’s Happening?
A key event is unfolding for a recently listed IPO in the Indian stock market. By September 2025, equity shares of nine mainboard companies, collectively valued at approximately Rs 3,246 crore, will become tradable as their anchor investors’ lock-in periods come to an end.
This process began on 1st July 2025 and includes notable names such as Ather Energy, Belrise Industries, Schloss Bangalore, Oswal Pumps, and ArisInfra Solutions.
For instance, Ather Energy’s 90-day lock-in period ends on 30th July, after which 2.087 crore equity shares — representing 5.6% of the total outstanding shares — will be available for trading. Similarly, Oswal Pumps’ 30-day lock-in period expires on 17th July, releasing 33.9 lakh shares into the market. This unlocking may lead to an increased supply of shares, potentially causing price fluctuations.
Lock-in Period as Defined by SEBI
The lock-in period is a regulatory requirement mandated by SEBI to ensure that anchor investors — such as mutual funds, foreign institutional investors, and insurance companies — do not offload their allotted shares for a certain duration.
According to SEBI guidelines, 50% of shares allocated to anchor investors are locked in for 90 days, while the remaining 50% are locked in for 30 days. This rule helps maintain price stability and prevents sudden selling pressure immediately after listing. However, once the lock-in expires, the increase in available shares may lead to heightened price volatility.
Additionally, a lock-in period also applies to promoters’ shares. Up to 20% of promoters’ holdings are locked in for 18 months, while the remainder is restricted for six months. Non-promoter investors, such as venture capital and private equity firms, also face a six-month lock-in period.
IPO Lock-in Expiry: Company List
Over the next four months, several prominent companies will see their anchor lock-in restrictions expire. Firms such as Hexaware Technologies, ArisInfra Solutions, Ather Energy, and Dr Agarwal’s Health Care Ltd are among those on the list.
It is worth noting that not all unlocked shares will be sold immediately. Promoters and long-term strategic investors may choose to retain their holdings. However, the rise in available shares could exert downward pressure on stock prices.
What Does It Mean for Investors?
The expiry of lock-in periods presents both opportunities and risks. On the positive side, increased share availability could improve liquidity and create new trading avenues. However, if anchor investors decide to sell their holdings, it may lead to a dip in share prices.
Investors are advised to focus on fundamentally strong companies, as such stocks might be available at attractive valuations during this period. That said, thorough analysis and a close watch on market movements are essential before making investment decisions.
What’s Next?
In the coming months, the Indian stock market is likely to see stock-specific volatility, driven by the influx of shares as lock-in periods end. In fact, shares of 57 companies — worth a cumulative Rs 1.29 lakh crore — will become tradable over the next four months.
How many of these shares actually hit the market will depend on investor sentiment and broader market conditions. Hence, investors must adopt a cautious and balanced investment strategy to navigate the volatility arising from lock-in expiries.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
