Foreign portfolio investors (FPIs) lead the exit as anchor investors after IPO lock-in periods end, according to a Sebi study of 242 IPOs published this week. The study found that anchor investors, who receive shares before an IPO opens to the public, tend to sell their shares gradually post lock-in, with FPIs exiting nearly twice as fast as mutual funds by year-end, highlighting a shift in institutional support dynamics.
The Securities and Exchange Board of India (Sebi) analyzed the selling patterns of anchor investors following the end of their lock-in periods. The regulator observed that FPIs were quicker to offload shares compared to mutual funds, which held on longer. The study also linked smaller IPOs and heavy selling immediately after lock-in expiry to sharper declines in share prices, indicating market sensitivity to anchor investor behavior.
This trend is significant as anchor investors are considered key to IPO success by providing early demand and price stability. The faster exit by FPIs suggests that their initial support may not translate into sustained investment, potentially affecting post-listing price performance. The findings provide insight into institutional investor behavior in the Indian IPO market, which has seen fluctuating participation from foreign and domestic entities.
The Sebi study, released on August 13, 2026, offers data-driven analysis of anchor investor activity across 242 IPOs, providing a comprehensive overview of post-IPO shareholding patterns and their impact on market dynamics.