IPO Reality Check: Half of Anchor Holdings Gone Within a Year
What Happened
A SEBI study of 242 mainboard IPOs found that anchor investors gradually sell their holdings after lock-in periods expire, with cumulative exits reaching around 50% within one year of listing. While initial selling remains limited at 3.2% after the first unlock, exits accelerate over time. Foreign Portfolio Investors (FPIs), who account for nearly 44% of anchor allotments, emerged as the largest sellers, whereas mutual funds were far more patient investors.
Key Takeaways
The study suggests anchor investors often view IPOs as investment opportunities rather than long-term holdings, with FPIs exiting far more aggressively than mutual funds after lock-in periods end.