Swiggy Lock-in Expiry in February: Ola Electric, NTPC Green & Others May Offload Shares Worth ₹70,500 Crore
Swiggy: At a time when Indian stock markets are experiencing volatility, with benchmark indices down nearly 9% from their record highs, the month of February could witness a massive influx of shares worth approximately ₹70,500 crore. This is due to the expiry of the lock-in period for several recently listed companies.
More than two dozen companies, including big names like Swiggy, Ola Electric, NTPC Green Energy, FirstCry, TVS Supply Chain, and Northern Arc Capital, among others, will see their IPO lock-in periods come to an end this month. According to an analysis by Moneycontrol, based on a report by Nuvama Institutional Equities, these firms may offload a significant number of shares into the open market.
While it is not certain that investors will sell these shares immediately after the lock-in expiry, they will have the option to do so, potentially impacting stock prices and overall market sentiment.
Major Players in the Lock-in Expiry
Among the companies facing lock-in expiry, Ola Electric will see the largest chunk of shares—1,962 million—becoming eligible for sale on February 10. This is followed by:
- FirstCry (335.3 million shares)
- SBFC Finance (225.5 million shares)
- NTPC Green Energy (183.3 million shares)
- Sagility India (157.6 million shares)
- Juniper Hotels (128 million shares)
- Ceigall India (108.1 million shares)
- Premier Energies (105.6 million shares)
Potential Value of Shares Hitting the Market
In terms of value, FirstCry tops the list with a potential sale value of ₹15,979 crore, followed by Ola Electric at ₹14,691 crore and Premier Energies at ₹10,752 crore. Below is a breakdown of the major companies whose shares could be available for trading post-lock-in expiry:
Top Companies with Expiring Lock-in Period
| Company | CMP (₹) | No. of Shares (mn) | Value of Shares (₹ Cr) |
|---|---|---|---|
| Brainbees (FirstCry) | 477 | 335 | 15,979 |
| Ola Electric | 75 | 1,962 | 14,691 |
| Premier Energies | 1,018 | 106 | 10,752 |
| Concord Biotech | 2,232 | 21 | 4,665 |
| Juniper Hotels | 293 | 128 | 3,747 |
| Ceigall India | 295 | 108 | 3,184 |
| Swiggy | 434 | 65 | 2,827 |
| NTPC Green Energy | 111 | 183 | 2,038 |
| Northern Arc Capital | 199 | 99 | 1,971 |
| SBFC Finance | 85 | 226 | 1,913 |
| TVS Supply Chain | 142 | 90 | 1,271 |
| Interarch Building | 1,594 | 7 | 1,052 |
| Capital Infra Trust | 112 | 71 | 796 |
| Sagility India | 50 | 158 | 791 |
| BLS E Services | 178 | 41 | 731 |
| Unicommerce Solutions | 156 | 46 | 710 |
| GPT Healthcare | 168 | 37 | 629 |
| Niva Bupa Health | 82 | 67 | 549 |
| ACME Solar | 209 | 23 | 470 |
| Swiggy | 434 | 10 | 416 |
(CMP as of February 4, Source: Nuvama, Moneycontrol)
How Will This Impact the Market?
1. Increased Supply May Lead to Price Corrections
When a large number of shares hit the open market, supply increases. If demand does not match this, stock prices might experience a correction. Companies like Ola Electric, FirstCry, and Premier Energies—which are seeing significant lock-in expirations—could see stock price volatility.
2. Market Sentiment Could Be Affected
Investors may adopt a cautious stance, leading to short-term pressure on stocks. However, long-term investors may see this as an opportunity to accumulate shares at lower prices.
3. Institutional Investor Decisions Will Be Crucial
The response from institutional investors, including mutual funds and foreign institutional investors (FIIs), will play a key role. If they absorb the supply, stock prices may remain stable. However, if major shareholders decide to book profits, it could lead to corrections.
Future Lock-in Expiries: More to Come
As per Nuvama’s report, the total potential share sales till April 30 could be around $32 billion as more than 80 companies will see their respective lock-in periods ending. Some other companies that will see their lock-in expire in February include:
- Capital Infra Trust
- Sagility India
- BLS E Services
- Unicommerce Solutions
- ACME Solar
- Saraswati Saree Depot
- Enviro Infra
- Quadrant Future
- Stallion India
What Should Investors Do?
If you are an investor in any of these companies, here are a few things to consider:
✔ Monitor Volumes & Stock Movement: Keep an eye on how stock prices react when the lock-in period ends. Sudden selling pressure could create buying opportunities.
✔ Understand Long-term Growth Prospects: Some of these companies, such as Swiggy, NTPC Green, and TVS Supply Chain, have strong fundamentals and could be good long-term investments.
✔ Check Institutional Holdings: If large investors continue to hold their stakes, it indicates confidence in the company’s future.
✔ Diversify to Manage Risk: Avoid putting all your capital in stocks that are experiencing lock-in expirations to minimize risks associated with price volatility.
Conclusion
The expiry of lock-in periods in February could bring significant market activity, with nearly ₹70,500 crore worth of shares becoming tradable. While this presents potential risks due to increased supply and possible price corrections, it also offers investors a chance to enter stocks at attractive prices.
Market participants should closely watch how institutional investors react and whether major stakeholders decide to sell. As always, a well-researched, long-term approach remains the best strategy in volatile market conditions.
Stay tuned for more updates on how these developments impact the Indian stock market!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.