Zerodha offers IPO lock-in tracking on Kite: How investors can use the feature

Zerodha has added a new data point on its Kite trading platform that allows investors to track IPO lock-in expiry timelines, a move aimed at helping users assess potential post-listing price risks in newly listed stocks.

In a social post, Zerodha founder and CEO Nithin Kamath highlighted that a significant portion of shareholding in an IPO remains locked in for certain categories of investors even after listing. Promoters, early-stage investors and employee stock option (ESOP) holders are typically subject to lock-in periods ranging from 30 days to 18 months.

Kamath said that when these lock-in periods expire, large shareholders may sell part of their holdings, increasing the supply of shares in the market. Such selling can put pressure on stock prices, particularly in the weeks following the expiry, regardless of whether there is a change in the company’s fundamentals.

To help investors track these events, Zerodha has made IPO lock-in information available within the Kite platform. The data appears in the fundamentals widget under the ‘events’ section, allowing users to view upcoming lock-in expiries for recently listed companies. The information is sourced from financial research platform Tijori.

Market participants often track lock-in expiries as a key post-IPO event, especially for companies with significant promoter, venture capital or private equity ownership. Analysts say visibility into these timelines can help retail investors better anticipate periods of higher volatility and make more informed trading and investment decisions.