In the month of February, the anchor lock-in period for three IPOs is coming to an end. Fluctuations in the IPO prices may be observed on their lock-in ending dates. Shares of institutional and non-institutional investors remain restricted from trading for the period specified by SEBI.
Understanding the Anchor Investor Lock-in Rule
Anchor investors are crucial because they give the IPO both liquidity and a vote of confidence right out of the gate. In both Mainboard and SME IPOs, they’re locked in for 30 days on half of their shares. Anchor investors can sell the remaining 50% of shares after 90 days from the allotment date. This step-by-step release helps manage market impact and supports stability in the stock’s early trading days.
Stocks with Lock-in Expiry in February
Three IPO’s anchor lock-in period is ending this month. These are the key ones to monitor:
1. Stallion India Fluorochemicals – Lock-in Expiry on 20th February (30 Days)
Recently listed, Stallion India Fluorochemicals will see its 30-day anchor lock-in end on 20th February. Chemical sector stocks often exhibit sharp post-listing moves. Investors should watch for volume spikes and price reactions.
2. NTPC Green Energy – Lock-in Expiry (90 Days)
A renewable energy subsidiary of NTPC, NTPC Green Energy’s 90-day lock-in will soon expire. Given its sectoral importance and institutional backing, market reaction could signal investor confidence or profit-taking.
3. Enviro Infra – Lock-in Ends (90 Days)
Focused on sustainable infrastructure, Enviro Infra also approaches the end of its 90-day anchor lock-in. Any significant sell-off by institutional investors could temporarily impact liquidity and price action.
How to Approach These Expiries
- Watch Trading Volumes: Unusual spikes often indicate anchor investor activity.
- Evaluate Post-IPO Performance: Strong post-listing gains may invite profit-booking.
- Look Beyond Short-term Swings: A fundamentally sound stock often rebounds.
- Track Institutional Holdings: Large investor exits could shift sentiment.
Final Take
Anchor lock-in expiries can create short-term turbulence but also offer entry points for long-term investors. Stay informed, analyze price movements, and factor in broader market conditions before making any decisions.
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