Top 10 Stocks to Watch Out for IPO Lock-in Period Expiry

Hold on to your hats! The Indian IPO market is about to take off again! After a record-breaking second half of 2023 for IPOs, the party is not over yet.

A whopping 66 companies will see their pre-listing share lock-in periods expire between March and June.

This marks the first time that major investors, including promoters and anchor investors holding restricted shares, will be able to divest their holdings.

This unlocking of shares could unleash a tidal wave of US$17.7 billion (Rs 1.47 lakh crore) worth of stock onto the market. With such a massive influx of shares, brace for potentially heightened volatility as these stocks adjust to new trading realities.

Here's a closer look at ten companies that will be in the spotlight as their lock-in periods lift.

#1 Tata Technologies

First on the list is Tata Technologies.

Tata Technologies is a Tata group company that provides services in engineering and design, product lifecycle management, manufacturing, product development, and IT service management to automotive and aerospace original equipment manufacturers and their suppliers.

It is a subsidiary of Tata Motors. The company is active in North America, Europe, and the Middle East.

The company launched its IPO on 22 November 2023 and listed on the exchanges on 30 November 2023. The IPO was a fresh issue of Rs 30.5 billion (bn).

The lock-in period for Tata Technologies ends on 27 May 2024. This means that investors who bought shares in the anchor round will be free to sell their shares from that date onwards.

The lock-in encompasses 262 million (m) shares.

Looking back, Tata Technologies made a spectacular debut at a staggering 168% surge on its listing day.

This remarkable feat marked the most impressive listing since November 2021 for an IPO exceeding Rs 5 billion (bn).

Tata Technologies posted a 6% sequential rise in its third-quarter net profit while revenue remained more or less the same compared to September 2023.

On a YoY basis, Tata Technologies' net profit of Rs 1.7 bn was 15% higher, compared to Rs 1.5 bn reported in the previous year period.

After announcing results, the company, in a separate development said Agratas - Tata Group's global battery business - and Tata Technologies have announced their collaboration to scale the former's product development and enterprise systems.

Under Tata Technologies, the group plans to set up an Outsourced Semiconductor Assembly and Test (OSAT) to start with.

Also referred to as assembly, testing, marking, and packaging (ATMP), this plays a crucial role in semiconductor manufacturing as no chip can be used in a product without going through the packaging and testing process.

For more details, see the Tata Technologies company fact sheet and quarterly results.

#2 JSW Infrastructure

Second on the list is JSW Infrastructure.

JSW Infrastructure, part of the JSW group, provides maritime-related services, including cargo handling, storage solutions and logistics services. The company develops and operates ports and port terminals under port concessions.

It handles various cargo, including dry bulk, break bulk, liquid bulk, gases, and containers.

It was the first IPO from the JSW Group in nearly 13 years. This makes it a highly anticipated event for investors, as the JSW Group is one of the largest and most successful conglomerates in India.

JSW Infra launched its IPO on 25 September 2023 and was listed on 6 October 2023. The IPO was an offer for sale of Rs 28 bn.

The lock-in period for this company will conclude in April 2024. This lock-in entails 103 m shares of the total outstanding shares.

For the December 2023 quarter, the company reported a 20% YoY rise in revenue at Rs 10.1 bn. It reported a more than two-fold jump in its consolidated net profit to Rs 2.5 bn, driven by higher income.

Going forward, the company plans to increase its cargo handling capacity from 153.4 MTPA to 238.4 MTPA by FY25.

The company is committed to expansion in India's port and logistics infrastructure market by targeting 300 MTPA capacity across its ports and terminals by 2030.

This expansion strategy includes greenfield and brownfield projects with a particular emphasis on non-major ports.

For more details, see the JSW Infra company fact sheet and quarterly results.

#3 Bharat Highways InvIT

Third on the list is Bharat Highways Infrastructure Investment.

The company is an infrastructure investment trust established to acquire, manage, and invest in a portfolio of infrastructure assets in India. The Trust is authorised to carry on the activities of an infrastructure investment trust under the SEBI InvIT Regulations.

The company's portfolio consists of seven roads operated on a HAM basis in Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh.

Bharat Highways InvIT went public on 28 February 2024 and was listed on 12 March 2024. The IPO was an offer for sale of Rs 25 bn.

The lock-in period for this company will conclude on 5 April 2024. This lock-in entails 83 m shares, constituting approximately 50% of the total outstanding shares.

The revenue from operations of the SPV Group for the financial year ended March 2023 was at Rs 15.4 bn, down marginally from Rs 16 bn a year earlier. Profit for FY23 jumped multifold to Rs 5.3 bn, compared with just Rs 0.6 bn in FY22.

Recently, Bharat Highways InvIT entered into a share purchase agreement (SPA) with GR Infrastructure.

Going forward, with the support of its sponsor and associate, the company intends to expand its portfolio through strategic acquisitions, including assets offered under a right of first offer agreement.

#4 Global Health

Fourth on the list is Global Health.

Global Health is one of the largest private multi-speciality tertiary care providers operating in the North and East regions of India.

The company has key specialities in cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopaedics, liver transplant, and kidney and urology.

Global Health went public on 3 November 2022 and got listed on 16 November 2022. The IPO was a fresh issue of Rs 5 bn and an offer for sale (OFS) of Rs 17.1 bn.

The lock-in period for Honasa Consumer will end on 13 May 2024.

The lock-in encompasses 54 m shares of the total outstanding shares.

Revenue from operations for the December 2023 quarter rose to Rs 8.3 bn in the third quarter of the current fiscal from Rs 6.9 bn in the year-ago period. It reported a 52% increase in consolidated net profit at Rs 1.2 bn for the third quarter.

The company with real estate developer DLF, has announced its plan to set up a 400-bed super speciality hospital in South Delhi.

It will intensify its presence in Delhi-NCR, taking the total bed count to 4,000 over the next three to four years.

For more details, see the Global Health company fact sheet and quarterly results.

#5 IREDA

Fifth on the list is IREDA.

Indian Renewable Energy Development Agency, founded in March 1987, is a Mini Ratna (Category - I) government firm. It is controlled by the Ministry of New and Renewable Energy (MNRE).

For over 36 years, it has been actively promoting, developing, and extending assistance for new and renewable energy (RE) projects, as well as energy efficiency and conservation projects.

It was the first IPO by a public sector enterprise (PSE) since Life Insurance Corporation (LIC) in May 2022.

The company launched its IPO on 21 November 2023 and got listed on exchanges on 4 December 2023. The IPO was a fresh issue of Rs 12.9 bn and an offer for sale (OFS) of Rs 8.6 bn.

The lock-in period for Campus Activewear ends on 30 May 2024. This lock-in entails Rs 1.4 bn shares.

Last week, the state-owned company's Board of Directors gave its approval to a proposal of borrowing Rs 242 bn for the financial year 2024-25 (FY25).

This includes raising funds through taxable bonds, green foreign currency bonds or Tier-II bonds, along with perpetual debt instruments (PDI) and green foreign currency bonds, among others.

The non-banking financial institution under the Ministry of New and Renewable Energy saw its revenue surge 44.2% on-year to Rs 12.5 bn.

In Q3FY24, IREDA reported a 67.2% on-year growth in net profit at Rs 3.4 bn, thanks to robust loan book growth and a reduction in bad debt.

Looking ahead, the company aims to extend financial assistance to various RE projects, including new and emerging RE sectors, while improving its asset quality.

This state-owned company is capitalising on India's transition to a low-carbon economy, leading the charge in India's green energy revolution.

For more details, see the IREDA company fact sheet and quarterly results.

#6 Cello World

Sixth on the list is Cello World.

Cello World is one of the famous consumer product companies in India, with 60 years of experience in this field that mainly deals in writing instruments and stationery, moulded furniture, consumer housewares and related products.

Cello World went public on 30 October 2023 and was listed on 9 November 2023. The IPO was an offer for sale of Rs 19 bn.

The lock-in period for this company will conclude on 7 May 2024. This lock-in entails 124 m shares, constituting approximately 50% of the total outstanding shares.

For the September 2023 quarter, its revenue came in at Rs 4.9 bn, while the net profit came in at Rs 8.7 bn. This was primarily due to increasing income from pan-India sales.

Going forward, its goal is to enhance its income by capitalising on the increasing manufacturing capacity and its market share.

Cello World also plans to launch new products in all of its categories, with a focus on innovative and premium products.

For more details, see the Cello World company fact sheet and quarterly results.

#7 Juniper Hotels

Seventh on the list is Juniper Hotels.

Juniper Hotels Limited is a luxury hotel development and ownership company.

The company's hotels and serviced apartments in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi are landmarks in the luxury, upper upscale and upscale categories.

Grand Hyatt Mumbai Hotel and Residences is India's largest luxury hotel, while Hyatt Regency Lucknow and Hyatt Regency Ahmedabad are the biggest upper upscale hotels in their respective markets.

Juniper Hotel went public on 21 February 2024 and was listed on 28 February 2024. The IPO was a fresh issue of Rs 18 bn.

The lock-in period for Juniper Hotel will end on 26 May 2024.

The lock-in encompasses 11 m shares, representing approximately 50% of the total outstanding shares.

The company has seen robust growth in top-line revenues in the last two years.

Revenue has grown nearly 4x over the last two years as the business has expanded, and it has been better able to improve the capacity utilization of its keys.

While the company has posted losses in the last three years, the net loss has narrowed from Rs 1.9 billion (bn) to just Rs 15 m in the last year between FY22 and FY23.

Going forward, Juniper Hotels has expressed its strategic intent to develop approximately 96,583 sq. ft. of mixed-use space adjacent to the Grand Hyatt Mumbai Hotel and Residences.

For more details, see the Juniper Hotels company fact sheet and quarterly results.

#8 Honasa Consumer

Eight on the list is Honasa Consumer.

Honasa Consumer Limited (HCL) provides beauty and personal care products through its digital platform.

The company has grown several consumer brands internally, including Mamaearth, The Derma Co., Aqualogica, Dr. Sheth's, and Ayuga.

With the support of Sequoia Capital India, Sofina SA, Fireside Ventures, and Stellaris Venture Partners, HCL is positioned to become a US$ 1 bn company.

Honasa Consumer is a pioneering unicorn in the D2C sector. As it ventures into the public market, it becomes the first unicorn in this space to do so, signifying a significant milestone for the Indian D2C industry.

The company launched its IPO on 31 October 2023 and was listed on exchanges on 10 November 2023. The IPO was a fresh issue of Rs 3.6 bn and an offer for sale (OFS) of Rs 13.4 bn.

The lock-in period for Honasa Consumer ends on 2 May 2024. This lock-in entails 158 m shares.

The company's consolidated revenue from operations grew 28% year-on-year to Rs 4.9 bn. It reported a 264% YoY increase in its net profit of Rs 259 m for the December 2023 quarter.

Looking ahead, the company has strategic plans to further expand its recent addition, BBlunt, and extend its presence to additional locations, thereby increasing its overall reach.

For more details, check out Mamaearth's financial factsheet and its latest quarterly results.

#9 Entero Healthcare

Ninth on the list is Entero Healthcare.

Entero Healthcare Solutions is a distributor of healthcare products in India. The company's technology-driven platform provides healthcare product distribution services to pharmacies, hospitals, and clinics throughout India.

The company launched its IPO on 9 February 2024 and got listed on exchanges on 16 February 2024. The IPO was a fresh issue of Rs 10 bn and an offer for sale (OFS) of Rs 6 bn.

The lock-in period for Entero Healthcare ends on 14 May 2024. This lock-in entails 3 m shares, constituting approximately 50% of the total outstanding shares.

Its revenue from operations came in at Rs 9.9 bn compared to Rs 8.3 bn a year back.

Its net profit for the quarter came in at Rs 67.7 bn, up 96%.

The company plans to expand its customer base in newer geographies. It wants to get into newer product segments in healthcare.

For more details, see the Entero Healthcare Solutions company fact sheet and quarterly results.

#10 Five Star Business

Last on the list is Five Star Business.

Incorporated in 1984, Five Star Business Finance Limited is an NBFC-ND-SI (Non-Banking Finance Company) providing secured business loans to micro-entrepreneurs and self-employed individuals.

Five Star Business launched its IPO on 9 November 2022 and got listed on 21 November 2022. The IPO was an offer for sale (OFS) of 15.9 bn.

The lock-in period for Five Star Business will end on 20 May 2024. The lock-in encompasses 58 m shares.

The company's total income increased 46.6% YoY to Rs 5.7 bn. While the net profit for the quarter jumped 43.6% to Rs 2.2 bn.

Going forward, the company plans to expand its business.

For more details, see the Five Star Business Company fact sheet and quarterly results.

Other Companies to see Pre-IPO Lock-ins Open?

In addition to these companies, more than 55 firms are poised to witness the expiration of their lock-in period by 31 July 2024.

Here are a few...

Stock	Lock-in period Ending Date
Bluejet Health	3-May-24
Ask Automotive	15-May-24
Inox Green	20-May-24
Gandhar Oil	28-May-24
DOMS Industries	19-Jun-24
Jyoti CNC	16-Jul-24

Conclusion

Upon the lock-in period expiry, the stock liquidity of a company typically experiences a surge. This is because shareholders who were previously restricted from selling their shares can now do so on the open market.

As a result of the increased number of shares available for trading, the trading volume of the stock may be impacted and potentially lead to heightened price fluctuations.

Additionally, it provides an opportunity for shareholders who have patiently waited to diversify their portfolios or realise the value of their investments, which can be particularly appealing to early investors and company employees.

On the downside, the end of a lock-in period can introduce challenges. One notable concern is the potential for increased price volatility. The sudden influx of shares into the market may cause significant fluctuations in the stock price, which can unsettle investors.

Therefore, investors must exercise caution and conduct thorough research and analysis before making an investment decision.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...