Paytm, Nykaa among tech stocks under watch as lock-in period ends

India’s fledgling technology sector faces a key test this month as lock-up periods on $14 billion worth of shares sold in initial public offerings expire, allowing billionaire backers including Warren Buffett and Masayoshi Son to sell.

Lock-ups end in November for four consumer-focused tech stocks, which have all slumped in the past month. Included are One 97 Communications Ltd., operator of payments service Paytm, and FSN E-Commerce Ventures Ltd., owner of beauty e-retailer Nykaa.

A relatively new phenomenon in India, high-profile tech IPOs have met with strong demand from the nation’s growing herd of retail investors, and seen by some as proving success for the Indian government’s efforts to foster startups.