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Investors are on tenterhooks as 10 initial public issues that had raised ₹9,800 crore last month would see mandatory anchor investors’ lock-in being released progressively through this month starting Monday.
Usually, stock price of newly listed companies fall once the 30-day lock-in for anchor investors ends as they start booking profit.
For instance, Star Health and Allied Insurance Company tanked two per cent to ₹766 and touched a low of ₹754 as the anchor investors lock-in got released on Friday.
The insurance company had raised ₹6,400 crore last month with issue price of ₹900 apiece.
Similarly, shares of Tega Industries were down one per cent at ₹587 on Friday.
Though it was well above the IPO price of ₹453, it was down 38 per cent from the listing day price of ₹725. Of the 10 issues that will be tested for anchor investors lock-in release, three are already trading below their issue price.
On Friday, Rategain Travel Tech and Shriram Properties closed at ₹381 and ₹90 against the issue price of ₹425 and ₹118, while Metro Brands was down at ₹468 against the IPO price of ₹500.
Selling pressure
Anchor investor investment is more than 10 per cent in five of the 10 stocks that would be put to test this month.
Edelweiss Alternative Research, in a report, said 31 of the 41 issuances between last January and October experienced selling pressure on expiry of anchor investors lock-in, while as much as 61 per cent of issuances declined the day after and over the five-day period thereafter. Selling pressure has been more near the anchor lock-in opening date in most stocks where the allocation to anchor investors accounts for larger chunk of the outstanding shares. Ten out of 13 such newly listed stocks have closed in the red with an average decline of 3 per cent on anchor opening date where anchor allocation was above 10 per cent of outstanding shares, it added.
Set for more action
The last two months were yet another blockbuster period for IPOs with 22 issuances raking in a whopping ₹52,900 crore even as the secondary markets turned volatile.
Yash Gupta, Equity Research Analyst, Angel One, said about 65 IPOs raised ₹1.31 lakh crore last year with the second half of the year witnessing big floats.
“We believe this year will also belong to the new-age companies with names such as OYO Rooms, IXIGO, Droom, Ola and Snapdeal hitting the capital market and the mother of all IPOs of LIC leading from the front,” Gupta added.
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