A Securities and Exchange Board of India study reveals that anchor investors tend to sell a significantly larger share in smaller mainboard IPOs after the mandated lock-in period, highlighting issue size as a key factor influencing post-listing behaviour.
A study by India’s markets regulator has found that anchor investors tend to trim a far larger share of their holdings after the mandatory lock-in period ends in smaller mainboard initial public offerings than in larger ones, underscoring how issue size appears to shape post-listing behaviour.
The Securities and Exchange Board of India examined 242 mainboard IPOs listed between April 2022 and October 2025 and found a clear inverse pattern between issue size and anchor exits. In offerings worth up to ₹250 crore, anchor selling reached 9.1% after the first 30-day unlock, rose to 20.3% after 60 days and climbed to 32.4% after 90 days. In a longer sample of 167 IPOs, the same smallest category saw exits of 72.5% by 365 days, compared with 40.8% for deals in the ₹1,001 crore to ₹2,500 crore range.
Even so, the regulator’s data suggest that most anchor allocations remain in place well beyond the prescribed exit windows. Across all issue sizes, the weighted average exit was just 3.2% after the first unlock, about 8% after 60 days and 17.3% after the second unlock at roughly 90 days. Sebi also found that heavier selling around the first unlock tended to coincide with weaker price performance, although that relationship was less visible by the 90-day window.
The study adds to a broader body of research showing that anchor participation can support IPO pricing and trading conditions. Academic work has linked anchor allocations with lower underpricing, steadier aftermarket performance and greater liquidity, while Sebi itself has previously said that 54% of IPO shares allotted to non-anchor investors were sold within a week of listing, highlighting how quickly many retail investors exit profitable issues.
Recent policy changes have also aimed to broaden the anchor book and increase domestic institutional participation. According to reports on Sebi’s revised framework, the reserve for anchor investors has been raised to 40%, with 33% set aside for mutual funds and 7% for insurers and pension funds, alongside a larger number of permitted anchor investors in bigger offerings. The latest study suggests that while such participation can still lend support in the early stages of an IPO, smaller issues remain more vulnerable to sharper selling once lock-ins expire.
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