The scale of the unlocking suggests heightened market activity as early investors regain liquidity. However, not all of this stock is expected to hit the market. A large portion remains with promoter groups, which should help prevent a sudden surge in supply and limit the risk of sharp price corrections.
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The next three months will see a series of unlocks across a diverse range of sectors, including financial services, steel, and consumer-facing businesses. HDB Financial Services will kick off the wave with 23 million shares becoming free to trade on September 29. Urban Company follows on October 16 with 41 million shares, while Shirnagar House of Mangalsutra and Dev Accelerator will see 4 million and 5 million shares, respectively, unlock on October 15. Euro Pratik Sales will also see its lock-in lift on October 20, potentially unlocking 3% of its equity, according to Nuvama’s September 23 report.
The most closely watched event, however, will be in November, when electric two-wheeler maker Ather Energy’s six-month lock-in ends. A staggering 162 million shares, or 44% of its outstanding stock, will become tradable on November 6, making it one of the largest unlock events of the quarter. On the same day, Highway Infrastructure and All Time Plastics will also see their restrictions end, albeit on a smaller scale. Later in the month, Borana Weaves will free up 10% of its shareholding.
Other companies set for significant unlocks include JSW Cement, Vikram Solar, NSDL, Kalpataru, Sambhv Steel Tubes, and Vikran Engineering.Read more: Hyundai shares rally nearly 90% from April lows. Can it turn multibagger?While the headline number of $20 billion appears substantial, the actual market impact will hinge on how much of this stock is sold. Promoter holdings, which are usually held for longer periods, could help cushion any potential volatility.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)