Four recently listed IPOs—Inventurus Knowledge Solutions (IKS), One Mobikwik, Vishal Megamart and Ajax Engineering- have their anchor lock-in expiry today. IKS and Mobikwik shares are under heavy selling pressure and slumped over 10% today. Anchor lock-in expiry is very crucial for any IPO as it allows anchor investors to sell their holdings, which exerts pressure on the stock and results in increased volatility and sudden price drops.
Inventurus Knowledge Solutions Faces Heavy Selling
Inventurus Knowledge Solutions IPO was listed on 19 December 2024. Jhunjhunwala Family-backed IPO stock saw a sharp correction of over 10% intraday. The stock had seen strong anchor investor participation, with 44.84% of the total issue subscribed by institutional investors before the IPO opened on 12 December 2024.
With the lock-in period expiring today, 17 March 2025, 8.43 lakh shares have become free for sale and market participants feel that weak market sentiment and broader concerns on IT-enabled services sector valuations are contributing to the decline. Despite a good post listing rally, IKS has been falling from its post IPO highs. IKS shares had tanked over 30% from its record high of INR 2,145.70 per share.
Notably, The Nistha Jhunjhunwala Discretionary Trust, Aryavir Jhunjhunwala Discretionary Trust and Aryaman Jhunjhunwala Discretionary Trust had a 16.37%. Additionally, Rekha Rakesh Jhunjhunwala had a 0.23% stake at the end of the December quarter.
One Mobikwik Below IPO Price
One Mobikwik IPO made its stock market debut on 18 December 2024 and also faced a similar fate. One Mobikwik share fell over 10% today and is trading below its IPO price of INR 279 per share. Mobikwik’s IPO had strong anchor investor participation, with 45% of the issue subscribed by institutional investors.
With the lock-in period expiring today, 46 lakh shares have become free for trade. The selling pressure was further accentuated by the stock’s underperformance as it has corrected 61% from its post-listing high of nearly INR 700 per share. The fintech sector is facing increasing regulatory heat, and concerns on profitability may have added to the woes of investors
Vishal Mega Mart and Ajax Engineering Hold Steady
Unlike IKS and Mobikwik, Vishal Mega Mart and Ajax Engineering have been relatively less impacted by today’s lock-in expiry.
Vishal Mega Mart Doesn’t Budge
Vishal Mega Mart was listed on 18 December 2024 and saw 15.38 crore shares, or 3% of its outstanding equity, get unlocked as its three-month lock-in ended. Despite the possibility of increased supply, the stock stayed range-bound, trading above its IPO price of INR 78 per share. Vishal Mega Mart stock has corrected 22% from its listing day high, but investor confidence remains intact due to the company’s strong business model and wide retail presence.
Ajax Engineering Sees Minimal Impact
Ajax Engineering is a concrete equipment manufacturer. Ajax’s one-month lock-in period is ending today, making 30 lakh shares or 3% of its outstanding equity, available for trade. However, the stock didn’t see any sharp selling pressure and is stable today. It’s trading below its IPO price of INR 629 per share but is holding on to its stability in a broader market fall, indicating investor confidence in the company’s long-term growth.
Anchor Lock-in Expiry and Market Reaction
Anchor investors play a crucial role in IPOs, they give early confidence and often set the tone for the market. But the expiry of their lock-in period can trigger volatility as we saw today. Not all anchor investors exit immediately but the possibility of large-scale selling keeps short-term traders on their toes.
Market experts say these stocks may see more volatility in the coming days as retail and institutional investors reassess their positions. With the broader market still uncertain, the reaction of mutual funds and long-term institutional investors will be watched.
Outlook for IKS and Mobikwik
For Inventurus Knowledge Solutions, sustaining investor confidence will be key. The company has strong fundamentals with a presence across the healthcare administration value chain and will be a long-term investor’s delight. However, it needs to deliver revenue growth and improve margins to determine its future course.
On the other hand, One Mobikwik Systems is struggling to find profitability despite having a large user base. Fintech is a high growth sector but regulatory headwinds and competition from bigger players is a challenge.
Now that the anchor lock-in expiry is over, investors will keep an eye on volumes and institutional activity to see what happens next. Today’s fall may be short-term, but market and fundamentals will decide the fate of these stocks in the long term.
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