SEBI Report: Anchor Investors Sell 50% of IPO Holdings After One Year

What Happened

Anchor investors sell nearly half of their initial public offering (IPO) holdings around 30 days after their one-year lock-in period concludes, according to a report from the Securities and Exchange Board of India (SEBI). The market regulator's analysis of 242 mainboard IPOs listed between April 2022 and October 2025 indicates a gradual increase in exits after the initial listing, escalating to about 50% by this post-lock-in stage.

While early exits within 30 days of listing are approximately 3.2%, the proportion rises to around 8% after 60 days and reaches approximately 18.5% for some issues by the 90-day mark. Foreign Portfolio Investors (FPIs) constituted the largest share of anchor allotments at nearly 44% and were also the most active sellers. They contributed the most to the exits in absolute value, with sales reaching approximately ₹17,500 crore at the first exit, ₹48,000 crore at the 60-day stage, and ₹104,000 crore by the second exit, representing about 20% of their allotment.

Mutual funds, holding 39% of anchor allotments, demonstrated more conservative selling behavior. Post the first lock-in expiry, 104 IPOs showed no mutual fund exit, and 83 IPOs had exits between 0% and 25%. Even by 90 days, mutual fund exits remained more restrained, with 41 IPOs showing zero exits and 111 in the 0%–25% bucket. This suggests that mutual funds are more patient holders of their anchor allocations.

The study also found that smaller IPOs experienced higher anchor exits. The Rs 0-250 crore issue-size category saw a 72.5% exit by T+365, compared to 40.8% for IPOs in the Rs 1,001-2,500 crore category. This trend of anchor investors selling shares after lock-in periods suggests that IPOs may increasingly be utilized as exit routes, potentially impacting stock prices.