Loss-Making IPOs Outperform in India; SEBI Analyzes Anchor Investors

Indian mainboard Initial Public Offerings (IPOs) from companies reporting negative net profit or accumulated losses have largely defied expectations, with a significant majority trading above their issue price.

The Ministry of Finance disclosed that 39 such companies launched IPOs in India over the past five years, based on data provided by stock exchanges to the Securities and Exchange Board of India (SEBI).

Loss-Making IPOs Defy Expectations

• As of July 28, 2026, 19 of these companies were trading above their initial issue price.
• An updated analysis on August 12, 2026, showed 18 out of these 19 maintained positions above the issue price.
• Kalpataru Limited was the sole company to fall below its original issue price.
• Ather Energy recorded the highest absolute difference from its issue price, followed by Aether Industries and PB Fintech.

Separately, SEBI conducted an empirical study on 242 mainboard IPOs listed between April 2022 and October 2025 to assess the impact of lock-in restrictions on anchor investors’ post-listing price behavior.

Anchor Investor Lock-in Analysis

• Under SEBI ICDR Regulations, 100% of shares allotted to anchor investors are locked in for 30 days, and 50% for 90 days.
• The weighted aggregate exit percentage by anchor investors was 3.2% after the 30-day lock-in.
• This percentage increased to 17.3% after the 90-day lock-in.
• Significant downward price pressure around the first unlock window (T+30) was concentrated in only 24 out of 242 IPOs.
• The mean price impact for these specific IPOs was -3.5%, with a median impact of -6%.
• No major price impact was observed around the second unlock window (T+90).

These findings suggest that while a concentrated impact occurs for a limited number of IPOs at the 30-day mark, the broader market largely absorbs anchor investor exits without significant price disruption.