Nykaa, Paytm, other newly listed stocks in focus as anchor investors lock-in period to expire
Premium- The one-month lock-in period for anchor investors of FSN Commerce Ventures (Nykaa) expires on Wednesday
Shares of newly listed stocks like Nykaa, PolicyBazaar, Sigachi industries, Paytm, Sapphire, Latent View Analytics are in focus from today as the mandatory 30 days lock-in period for anchor investors is going to end. In most cases, selling pressure persists over the day as anchor investors no longer are bounded to remain invested in these companies after the mandatory lock-in period.
“If we analyze the data then there is no clear trend about the performance of stocks in the long term after the end of the lock-in period but we generally see selling pressure near the end of the 30-days lock-in period or on the first day of trade after the 30-day's lock-in period over. One interesting observation is seen that the low made on the first day of trade after the 30-days lock-in period may act as strong support for a further rally for quality stocks," said Amit Pamnani, Chief Investment Officer & DGM for Investment Banking at Swastika Investmart Ltd.
The one-month lock-in period for the anchor investors of FSN Commerce Ventures, which operates Nykaa, will expire on Wednesday whereas that for One97 Communication (Paytm) and PB Fintech (Policybazaar) will expire on 15 and 13 December respectively.
Other newly listed stocks which will see anchor lock-in expiry this month are Sigachi Industries, Latent View Analytics and Tarson Products.
Pamnani went on to add that taking recent IPOs like Nykaa, Fino, Paytm, PolicyBazaar and others, where the 30-days lock-in period is going to end, “the outlook for Latent view is still bullish while there will litmus test of new edge technologies companies amid expensive valuations however some of them have already corrected meaningfully."
November was great for IPOs with ten issuances mopping up a whopping ₹36,100 crore on aggregate. Though, December would test their staying power as those newly listed stocks’ lock-ins for anchor investors end, said Edelweiss Alternative Research in a note.
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