The lock-in period of anchor investors in these stocks is ending in December.

There are at least 10 stocks including Nykaa, PolicyBazaar and many others that will see their anchor shares with the 30-day lock-in period ending from December 8.

Anchor investors are institutional investors, such as mutual funds or sovereign wealth funds, who buy enough shares in a company just before the IPO opens for subscription.

These investors, because they hold a substantial amount of stake when a company goes public, cannot sell their shares before 30 days from the date of allotment.

Typically, stock prices decline under selling pressure as the 30-day lock-in period expires, even though it is difficult to pick a certain trend.

As per research by Edelweiss, 51 shares went public in the calendar year 2021 (CY21) and 41 issue anchor investor lock-in dates had already expired. Of these, 76 per cent of the issuances have experienced selling pressure on the anchor lock-in expiration date, with an average decline of 2.6%.

In most cases, selling pressure persists in the day after the anchor lock-in expiration date: 61% (25 out of 41) declined 2.2% on the day following the anchor’s opening date. And five days after the anchor’s opening date, 61% of the issue declined 3.9%.

Nykaa, whose shares closed down 2.25% on Monday 2,141.80 on the NSE, its anchor investors will see the 30-day lock-in period ending tomorrow, December 8.

Similarly, in the November issue, there are four stocks where the anchor allocation is 10% on the outstanding shares. These include Fino Payments (11.2%) whose anchor lock-in period expires on December 9, SJS Enterprises (14.5%) expiring on December 10, Neelam Foods (12.4%) expiring on December 16 and GoFashion (12.2%), whose 30-day lock-in period for anchor investors expires on December 27.

Check out the table for a full list of stocks that anchor investors’ lock-in period that expires in December.