Paytm, Policybazaar, Nykaa other stocks may see selling pressure this month as anchor investor lock-ins end

Paytm, Policybazaar, Nykaa and a few other recent IPO stocks face their first share price stress test this month when anchor investors are allowed to sell their shareholdings.

Anchor investors
Dalal Street will closely watch whether institutional investors, which make up the anchor book, will stay invested, or book profits and head home.

Paytm, Policybazaar, Nykaa and a few other recent IPO stocks face their first share price stress test this month when anchor investors are allowed to sell their shareholdings. Most shares listed at significant premium to their respective issue prices in November amid a hot IPO market. But anchor investor lock-ins in ten such stocks are set to open in December after a 30-day period. Dalal Street will closely watch whether institutional investors, which make up the anchor book, will stay invested, or book profits and head home.

Anchor book lock-in ends for these stocks

Nykaa was the first stock to see its anchor book lock-in period end on Wednesday, 8 December. The stock did not witness any selling pressure and instead soared 1.2% on the anchor unlocking day. Nykka’s share price is at present over 96% above the IPO price.
– Fino Payments Bank anchor lock-in period ended today, 9 December. Unlike Nykaa, Fino Payments Bank share price fell 2.2% on Thursday. The anchor book portion of the IPO made up 11.2% of the total outstanding shares. Fino’s share price is down from the IPO price.
– SJS Enterprises’ anchor lock-in will end tomorrow. Currently, the stock is trading at Rs 423 per share, down from the IPO price of Rs 542 apiece. The stock was listed at a discount. The anchor portion makes up a massive 14.5% of the outstanding shares of SJS Enterprises.
– Anchor lock-in of PB Fintech, the parent company of Policybazaar will end on Monday, December 13. Policybazaar’s share price is currently trading at Rs 1,139 per share, up from the IPO price of Rs 980 apiece. The anchor portion has 5.8% of the total outstanding shares of the company.
– Sigachi Industries anchor portion lock-in will end along with Policybazaar on next monday. Sigachi is among the best performing recent listings on Dalal Street. The stock had listed at 267% premium over IPO price. Currently it trades over 150% above the IPO price.
One 97 Communications or Paytm will see its anchor portion unlocked next week on December 15. The largest IPO to ever enter Dalal Street had opened at a discount and continues to trade over 20% below its IPO price of Rs 2,150 per share.
Sapphire Foods anchor portion will unlock on December 16. As much as 12.4% of the total outstanding shares of the company are part of the anchor book. Sapphire Foods had listed a tepid premium to the IPO price of Rs 1,180 per share. Currently it trades at Rs 1,191 per share.
– Latent View Analytics share price is up nearly 220% from the IPO price. The anchor portion will unlock later this month on December 20.
– Tarsons Products is trading at a discount to the IPO price currently at Rs 640 per share. The anchor portion will unlock on December 23.
– Go Fashion had listed at a strong 82% above the IPO price of Rs 690 per share and currently sits at Rs 1,174 per share. The anchor portion makes up 12.2% of the total outstanding shares of the company. Anchor portion will unlock on December 27.

Weak performance post anchor unlocking

Edelweiss highlighted that so far this year 76% of the IPOs have slipped on the day that anchor lock-in period ends. “In most cases, selling pressure persists over the day after anchor lock-in opening date: as many as 61% of the issues declined by 2.2% on the day after the anchor opening date. And after five days of the anchor opening date, 61% of issues traded 3.9% down,” they added.

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