FPIs Drive IPO Anchor Selling, Causing Price Pressure: Sebi

A recent study by the Securities and Exchange Board of India (Sebi) has identified Foreign Portfolio Investors (FPIs) as the primary sellers among anchor investors in mainboard Initial Public Offerings (IPOs).

This analysis, which covered 242 IPOs listed between April 2022 and October 2025, highlights a direct correlation between substantial anchor investor exits and considerable price pressure on IPO stocks, particularly around the 30-day unlock window.

Anchor Investor Exits and Market Impact

The Sebi study found that a high rate of anchor exits, especially in smaller IPOs, significantly impacted stock prices.

Foreign Portfolio Investors recorded the highest average exit rate:

For IPOs with over 10% anchor holdings sold, the average price impact was a negative 3.5% during the T+29 to T+33 window.

FPIs accounted for the highest average exit at 24.5% within this period of high-intensity selling.

The price pressure worsened with increased selling intensity, though it largely dissipated by the 90-day unlock window, suggesting a temporary market effect.

Understanding Longer-Term Selling Trends

Beyond the initial lock-in periods, anchor investors continued to divest their holdings, with approximately half of the aggregate anchor allotment disposed of within a year.

Foreign Portfolio Investors were also at the forefront of these longer-term exits:

FPIs sold about 60% of their aggregate anchor allotment by T+365.

This amounted to a substantial Rs 22,474 crore in sales.

The findings from Sebi indicate a temporary supply overhang caused by anchor selling, predominantly observed around the first unlock window for IPOs in India.