Star Health, MapmyIndia, other newly listed stocks in focus as anchor investors lock-in period to expire

The newly listed stocks like Star Health, MapmyIndia, RateGain Travel, Data Patterns, and other will be in focus once the regulatory leash (30 days from the date of allotment) on selling for anchor investors begins to loosen from January 7. From 7th January, there is a lineup of twelve recent listing in which anchor lock-in is set to unravel.

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.

Brokerage house Edelweiss in a note in December had highlighted an indicative data point that 76% of the 41 issuances from January to October (2021) experienced selling pressure on expiry of anchor lock-in. And as much 61% of issuances declined the day after and over the five-day period thereafter.

“December marked a similar trend for issuances that came out of anchor lock-ins. By magnitude of decline, 40% of the issuances declined on average by 6% on the day after the lock-in ended, while 60% issuances edged down 2.3% on average the day after and 70% logged declines of 7% over a five-day period from lock-in expiry,” the brokerage and research firm stated.

Edelweiss ran a screen where-in anchors were allotted more than 10% of outstanding shares. It filtered out five stocks that were Rate Gain and Shriram Properties with over 13% of anchor shares and the lock-in period ends on 14th January, Data Patterns (11.3% of anchor shares with lock-in set to end on 24th Jan), Supriya Lifesciences (14.3%| 24th Jan) and CMS Info Systems (10.3%| 28th Jan).

Lock-in period of Star Health, Tega Industries, HP Adhesives, Metro Brands, MedPlus, Anand Rathi Wealth will also end this month.