India’s listed startup ecosystem is entering a crucial phase of investor exits, with shares worth nearly Rs 2.3 lakh crore across 11 newly listed new-age companies becoming eligible for trading between May and August as pre-listing lock-in periods expire.
The unlock wave comes at a time when late-stage private funding activity remains subdued and public markets are increasingly emerging as a key liquidity avenue for startup investors seeking exits.
The expiry cycle spans some of India’s largest startup IPOs. Lock-ins in Groww, Lenskart and Pine Labs have already expired over the past week, while upcoming expiries in Meesho, Fractal, PhysicsWallah, Amagi and Shadowfax are expected to keep secondary market activity elevated through the next few months.
The analysis is based on the number of shares becoming eligible for trading following lock-in expiry and company closing prices on the BSE as of May 13. The figures represent shares becoming eligible for trading and not necessarily shares that will immediately come up for sale.
Several investors, bankers and public market experts Moneycontrol spoke with, however, said only a fraction of the eligible supply is likely to eventually enter the market through staggered block deals and secondary transactions.
Among the companies that went public last year, lock-ins in Groww, Lenskart and Pine Labs have already expired over the past week, making shares worth a combined Rs 1.43 lakh crore eligible for trading.
Groww accounts for the single-largest unlock in the cohort, with over 4.18 billion shares worth nearly Rs 78,808 crore becoming eligible for trading following the expiry of lock-in restrictions on May 12.
More than 1.04 billion Lenskart shares worth nearly Rs 49,951 crore became eligible for trading earlier this month following the expiry of shareholder lock-ins.
In Pine Labs, shares worth around Rs 15,019 crore became eligible for trading on May 13.
The broader liquidity cycle has already started playing out in public markets.
As Moneycontrol reported, investors in Lenskart sold shares worth around Rs 5,650 crore through block deals after the lock-in expiry. Similarly, investors, including YC Holdings, Ribbit Capital and Peak XV Partners, sold shares worth Rs 5,326 crore in Groww.....
Upcoming expiries are also expected to keep investors focused on startup secondary activity.
Meesho alone is set to see more than 3.08 billion shares, worth around Rs 59,130 crore, become eligible for trading on June 10, while Fractal's Rs 8,142 crore worth of shares will be tradable in August.
Other companies in the pipeline include PhysicsWallah, Amagi, Wakefit, Shadowfax, Capillary Technologies and Aye Finance.
Industry stakeholders estimate that up to 20 percent of the eligible supply could realistically come into the market over the next six to 12 months, largely through block deals and secondary transactions.
