Anand Rathi Wealth, Shriram Properties, and Rakesh Jhunjhunwala-backed Star Health and Allied Insurance are among the 12 stocks that will see their anchor lock-in period end this month after recent IPOs, said Edelweiss Alternative Research. With the anchor investor lock-in period ending, investors will be watching closely if these newly listed companies witness selling pressure or will institutional investors hold on to their stakes. In December, 12 IPOs raised Rs 168 billion from primary market investors. Of these, 9 listed at a premium to the issue price while three began trading at a discount to the IPO price.
–Star Health and Allied Insurance was the largest IPO in December. The Big Bull Rakesh Jhunjhunwala-backed private insurer listed flat, failing to impress investors. Currently, the stock is down 14% from the issue price. Anchor investors hold a 6.2% stake in the company. The Lock-in period ends on January 7.
–Tega Industries shares listed at a sharp 60% premium over the IPO price of Rs 453 apiece. Although listing gains have been trimmed, the stock is still up 32% from the issue price. The anchor lock-in period for the stock ends on January 7. Anchor investors own 6.2% shares in the firm.
-Anand Rathi Wealth has 8.5% of the entire shareholding allocated to anchor investors, who will be eligible to sell their shares from January 10 onwards. The stock listed at a 6% premium to IPO price and has since extended gains to 17%.
-RateGain Travel Technologies has a massive 13.2% allocation to anchor investors. Shares of the company had listed 20% lower from the issue price and still trade 8% below the IPO price. The anchor lock-in period ends on January 14.
-Shriram Properties has had a disappointing start to its Dalal Street journey, falling 16% on listing and now trading at a 27% discount to the IPO price. Anchor investors have a 13.4% stake in the company, the second largest of all IPOs listed in January. Lock-in period ends January 14.
-CE Info Systems (MapmyIndia) shares have zoomed 71% over the IPO price, after having listed at a 35% premium. Anchor investors have a 5.7% stake in the company which can be sold after January 17.
-Metro Brands shares are down 13% from the IPO price, extending their weak run on Dalal Street. Anchor investors have just 3% stake in the company. The lock-in period ends on January 17.
-Medplus Health Services shares zoomed 41% over the IPO price on listing and are currently 31% above the issue price. Anchor investor lock-in period ends on January 19.
-Data Patterns (India) shares have held firm since listing at a 29% premium to IPO price and continue to trade at a premium to the said price. Anchor investors can sell their 5.8% stake in the stock from January 21.
-HP Adhesives, the smallest IPO to have entered Dalal Street in December allocated an 11.3% of its shares to anchor investors. The stock listed 21% over IPO price and has extended those gains to 64% now. The anchor portion lock-in ends on January 24.
-Supriya Lifesciences anchor portion will end on January 24, after which anchor investors can sell their 14.3% stake in the company — the highest of all IPOs in December.
-CMS Info Systems was the last stock to list on the exchanges in 2021. The stock is trading at an 8% premium to the IPO price. Anchor investors have a 10.3% stake in the company, which can be sold when the anchor lock-in ends on January 28.
Review of performance post-lock-in period
In December, shares of Nykaa, PolicyBazaar, and Paytm were down in the red 5-days after the lock-in period ended. Nykaa stock was down 2.5% five days after the lock-in period ended, while that of Paytm was down 2.7%. Policybazaar was down a massive 18.5%. Of the 10 stocks where the anchor lock-in period ended in December, 7 were down in losses in the five-day period after the lock-in period ended. Edelweiss Alternative Research has highlighted that 76% of the IPOs between January and October of 2021 experienced selling pressure on the expiry of anchor lock-in.