As February is coming to an end and Investors’ portfolios are red. This ongoing market correction may continue in March. As many as 42 IPOs have their IPO lock-in expiry in the upcoming month. It will free shares worth INR 6,766 crore from the anchor investors. Investors should remain cautious as increased supply from anchor investors may cause selling pressure and impact the price.
Understanding the Impact of Anchor Lock-in Expiry
When an IPO is launched some portion of shares is allocated to anchor investors before opening it for the public. Anchor investors are typically large institutional investors, mutual funds, and high-net-worth individuals.
However, when the lock-in period ends for an IPO, anchor investors may choose to sell their holdings. History shows that this increased supply exerts pressure on the IPO prices, and sometimes triggers a short-term dip if demand does not absorb the selling pressure.
Notably, IPOs with strong fundamentals and good business models recover quickly from these fluctuations. This is directly linked to offloading from the investors.
Key Effects of Anchor Lock-in Expiry:
- Increase in Share Supply – If multiple anchor investors decide to sell, the market may struggle to absorb the sudden supply.
- Potential Price Volatility – Prices may drop temporarily before stabilizing, depending on the stock’s demand and fundamentals.
- Market Sentiment Indicator – If prominent funds continue holding post-lock-in, it signals confidence in the stock.
- Buying Opportunities – A temporary dip can present a good entry point for long-term investors.
Key IPOs with Anchor Lock-in Expiry in March
180-Days Promoters Lock-in Expiry IPOs
| IPO Name | Lock-In Ending Date | Shares Allocated | Allocation Portion of Total Issue (%) | Allocation Size (INR Cr) |
|---|---|---|---|---|
| Premier Energies | 28-Feb | 57,56,797 | 30.00 | 846.12 |
| Ecos (India) Mobility | 03-Mar | 54,00,000 | 30.00 | 1,805.36 |
| Orient Technologies | 03-Mar | 31,27,522 | 30.00 | 64.43 |
| Exicom Telesystems | 03-Mar | 1,25,38,800 | 40.76 | 178.05 |
| Vishnu Prakash Punglia | 03-Mar | 92,70,000 | 29.71 | 91.77 |
| Aeroflex Industries | 03-Mar | 95,99,980 | 29.25 | 103.68 |
| Pyramid Technoplast | 03-Mar | 16,59,600 | 18.00 | 27.55 |
| Baazar Style Retail | 05-Mar | 64,29,372 | 30.11 | 250.10 |
| Gala Precision | 07-Mar | 9,50,586 | 29.95 | 50.29 |
| Platinum Industries | 11-Mar | 41,28,237 | 30.00 | 70.59 |
| Kross | 13-Mar | 62,49,999 | 30.00 | 150.00 |
| EMS Limited | 17-Mar | 45,67,476 | 30.00 | 96.38 |
| Ratnaveer Precision | 17-Mar | 50,52,000 | 30.00 | 49.51 |
| RR Kabel | 21-Mar | 56,58,201 | 29.82 | 585.62 |
| Western Carriers | 24-Mar | 85,96,743 | 30.00 | 147.46 |
| Northern Arc Capital | 24-Mar | 87,02,031 | 30.00 | 228.86 |
| Samhi Hotels | 24-Mar | 4,89,32,143 | 45.00 | 616.55 |
| Zaggle Prepaid Ocean | 25-Mar | 1,54,58,515 | 45.00 | 253.52 |
| Tolins Tyres | 26-Mar | 30,53,097 | 30.00 | 69.00 |
| Shree Tirupati Balajee | 26-Mar | 61,32,000 | 30.00 | 50.90 |
| Manba Finance | 27-Mar | 37,71,000 | 30.00 | 45.25 |
| Yatra Online | 27-Mar | 2,45,59,860 | 45.00 | 348.75 |
90-Days Lock-in Expiry IPOs
| IPO Name | Lock-In Ending Date | Shares Allocated | Allocation Portion of Total Issue (%) | Allocation Size (INR Cr) |
|---|---|---|---|---|
| Suraksha Diagnostics | 04-Mar | 57,56,797 | 42.85 | 253.87 |
| Sai Life Sciences IPO | 16-Mar | 1,66,26,336 | 30.00 | 912.79 |
| Vishal Mega Mart | 16-Mar | 30,76,92,307 | 30.00 | 2,400.00 |
| One Mobikwik | 16-Mar | 92,25,807 | 53.42 | 257.40 |
| Inventurus Knowledge Solutions | 17-Mar | 56,93,832 | 40.25 | 1,120.18 |
| International Gemmological Institute | 18-Mar | 4,55,71,942 | 33.41 | 1,900.35 |
| Transrail Lighting | 24-Mar | 56,93,832 | 40.25 | 245.97 |
| Mamata Machinery | 24-Mar | 22,04,202 | 29.86 | 53.56 |
| Sanathan Textiles | 24-Mar | 51,40,186 | 30.00 | 165.00 |
| DAM Capital | 24-Mar | 88,86,268 | 29.93 | 251.48 |
| Concord Enviro | 24-Mar | 21,41,195 | 30.00 | 150.10 |
| Ventive Hospitality | 26-Mar | 1,11,90,513 | 45.00 | 719.55 |
| Carraro India | 26-Mar | 53,26,703 | 51.47 | 375.00 |
| Senores Pharmaceuticals | 26-Mar | 66,65,725 | 10.00 | 260.00 |
| Unimech Aerospace | 27-Mar | 19,05,094 | 29.91 | 149.55 |
| Indo Farm Equipment | 30-Mar | 36,30,000 | 30.00 | 78.04 |
30-Days Lock-in Expiry IPOs
| IPO Name | Lock-In Ending Date | Shares Allocated | Allocation Portion of Total Issue (%) | Allocation Size (INR Cr) |
|---|---|---|---|---|
| Dr Agarwal’s Health | 05-Mar | 2,17,78,798 | 28.92 | 875.51 |
| Ajax Engineering | 15-Mar | 60,30,449 | 30.00 | 379.32 |
| Hexaware Technologies | 19-Mar | 3,66,94,914 | 30.00 | 2,598.00 |
| Quality Power | 21-Mar | 90,92,070 | 45.00 | 386.41 |
Investment Strategies for March Lock-in Expiry
- Monitor Trading Volumes – A surge in volume may indicate anchor selling pressure.
- Assess Stock Fundamentals – Companies with solid earnings growth tend to withstand selling pressure better.
- Look for Buying Opportunities – If a stock dips due to selling, it may be a great long-term buy.
- Watch High-Valuation Stocks – Stocks that debuted at aggressive valuations may see sharper corrections.
- Diversify Portfolio – Spreading investments across sectors can mitigate risks.
Final Thoughts
March will be a crucial month for IPO investors, with 20 IPOs having their anchor lock-in expiry. Market analysts are expecting short-term volatility in March. Investors should take more cautious steps and do thorough research before investing. Continuous monitoring and planned investment can help investors overcome volatility and help them focus on long-term growth.
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