Dalal Street faces a liquidity test this week as ₹16,344 crore in equity supply hits the open market. The wave stems from the expiration of shareholder lock-in periods for 15 recently listed firms. Ten of these companies—Deepa Jewellers, Rays of Belief, Purple Style Labs, Priority Jewels, ESDS Software, Knack Packaging, SAi Parenteral’s, Amir Chand Jagdish Kumar, TruAlt Bio Energy, and EPack Prefab—see their restrictions lift on Monday, October 5. This immediate influx sets the tone for the week’s price volatility.
The heavyweight in this batch is Coal India’s subsidiary, Central Mine Planning and Design Institute (CMPDI). Its six-month lock-in expires on Tuesday, October 6, freeing up 464 million shares. That represents 65% of its outstanding equity, valued at ₹9,512 crore based on Thursday’s closing price. According to Abhilash Pagaria, Head of Alternative and Quantitative Research at Nuvama, this volume is significant. CMPDI shares have already corrected 28% from their post-listing high of over ₹280, though they remain 20% above the issue price of ₹179.
ESDS Software Solutions adds another layer of complexity. Its lock-in ends today, making 25 million shares (2.5% of outstanding equity) eligible for trading. Valued at ₹358.5 crore, this stock had initially surged to 4x its issue price of ₹429 shortly after listing. The momentum has since reversed. The stock has hit five consecutive lower circuits of 5% following its first quarterly results disclosure last week. Traders should watch for potential selling pressure as early investors exit.
The remaining unlocks are staggered throughout the week. Pace Digitek follows CMPDI on Tuesday, with ₹1,783 crore in shares becoming tradable. Glottis and Valiant Labs see their lock-ins open on Wednesday, October 7. Om Freight Forwarders closes the week on Friday, October 9, with ₹173.6 crore in shares hitting the market. Notably, Om Freight’s shares have nearly halved from their issue price, signaling weaker demand for some of these new listings.
A critical data point for position sizing: eight of the 15 companies are currently trading below their issue price. Another eight are trading at least 20% lower than their post-listing highs. This suggests a broader correction phase for recent IPOs. The unlock does not mean all shares will be sold immediately; they merely become eligible for trading. However, the sheer volume of ₹16,000+ crore in potential supply warrants caution. Sector watchers advise monitoring the absorption capacity of the market, particularly for high-volume names like CMPDI and ESDS, as they transition from restricted to fully tradable status.