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SEBI study: Anchor investors sell 50% of IPO holdings after a year
Anchor investors in Indian mainboard IPOs sell 50% of their holdings within 30 days after the one-year lock-in expires, a SEBI study has found. The report, covering 242 IPOs from April 2022…
The Story in Brief
Anchor investors in Indian mainboard IPOs sell 50% of their holdings within 30 days after the one-year lock-in expires, a SEBI study has found. The report, covering 242 IPOs from April 2022 to October 2025, shows exits are minimal at first (3.2%) but accelerate as the lock-in ends. Foreign portfolio investors (FPIs) accounted for 44% of anchor allotments and the largest exit value, contributing Rs 10,400 crore at the second exit stage. Mutual funds were more patient, with many IPOs showing zero or limited MF exits. The findings come amid concerns that IPOs are being used as exit routes, as flagged by the Chief Economic Adviser.
The Indian Opinion
The CEA's complaint that IPOs are becoming exit routes resonates, but this SEBI data shows the picture is more nuanced. Mutual funds, the second-largest anchor class, largely hold their allocations. The loudest exits come from foreign portfolio investors, who are also the biggest recipients of anchor allotments. Painting all anchor investors with the same brush is lazy. The real test will come if SEBI tightens lock-in norms or differentiates between investor types. Will the regulator act to protect retail investors left holding overhyped stocks?
Source: thehindu.com
This story was synthesised by AI from the source linked above.
