Anchor Exodus Revealed: FPIs Aggressively Liquidate Up to 60% of IPO Holdings While MFs Maintain Patience Post Lock-in

Anchor Exodus Revealed: FPIs Aggressively Liquidate Up to 60% of IPO Holdings While MFs Maintain Patience Post Lock-in​

SEBI Study Delivers Critical Insights into Anchor Investor Exit Behaviour in Mainboard IPOs​

A new comprehensive study released by SEBI scrutinizes the exit behaviour of anchor investors across India's mainboard Initial Public Offerings (IPOs) from April 2022 to October 2025. Analyzing data from 242 validated IPOs, the research provides a granular look at who is selling their pre-allotted shares and how that activity impacts market supply over an extended period.

The analysis focused on six key holding dates: T+30, T+60, T+90, T+180, and T+365, allowing for a study of not just the mandated lock-in windows but also the long-term commitment of anchor investors. The findings indicate that while aggregate exit rates remain relatively low immediately post-lock-in, cumulative selling intensifies significantly over an extended period.

Short-Term Anchor Exit Dynamics: First 90 Days Analysis​

The initial release data shows a clear pattern of incremental disposal rather than concentrated selling during the mandatory lock-in periods. At the first unlock event (T+30), the weighted aggregate anchor exit rate stood at a modest 3.2%. This accelerated to around 8% by T+60, and further climbed to 17.3% following the second unlock event (T+90).

However, not all IPOs experienced this gradual selling. The distribution analysis highlighted significant variance based on issue size. The smallest issues (₹0-250 crore) displayed the most aggressive short-term exits, recording a First Exit rate of 9.1%, compared to significantly lower rates in larger issuance buckets.

Price Impact and Anchor Selling Intensity​

The study observed that exit intensity—especially when exceeding 10% during the first unlock window (T+30)—is directionally linked to supply pressure. For stocks where the First Unlock saw over 10% anchor exit, FPIs were the largest contributing force, accounting for an average of 24.5% exit, while MFs averaged only 11.5%.

The price impact at the second unlock (T+90) was notably more muted compared to the T+30 window. This suggests that the immediate supply pressure generated during the initial free-market period is a more pronounced factor than the later staged sales.

The Long View: Anchor Behaviour Beyond Lock-in Period​

The extended exit analysis, covering 167 IPOs through one year post-allotment (T+365), reveals a substantial shift in anchor commitment. The aggregate weighted exit percentage surged dramatically from approximately 3.5% at T+30 to nearly 50.7% by T+365.

This signifies that the prescribed lock-in windows capture only a fraction of the eventual selling activity planned by anchor investors. By one year, roughly half of the total aggregate anchor allotment value had been disposed of across the market.

Divergence Unfolds: FPI vs Mutual Fund Exodus at T+365​

The most telling finding is the widening divergence in exit behaviour between Foreign Portfolio Investors (FPIs) and Mutual Funds (MFs). By the three-year mark, FPIs had exited approximately 60% of their aggregate anchor allotment. In sharp contrast, MFs registered the lowest extended exit rate at T+365, standing at only 38%.

This divergence intensified from the initial stages (T+90 saw FPI exiting ~21% versus MF at ~15%) and confirmed that FPIs are far more aggressive sellers over time. The data shows the market is witnessing two distinct types of anchor investors: those who act as rapid liquidity providers, and those who function as highly patient long-term holders.

Absolute Value vs Exit Intensity by Investor Category​

While FPIs showed superior exit intensity (percentage of their holdings sold), they also dominated the absolute value of secondary supply generated. By T+365, FPIs accounted for approximately ₹22,474 crore in sales against a total allotment base of ₹37,491 crore. MFs were the second largest source of supply by value at ₹12,228 crore.

Body Corporates exhibited the highest weighted exit intensity among all categories (peaking at 23.3% at T+90), although their total absolute sales contribution remained marginal compared to FPIs and MFs. This underscores that while smaller entities may show intense selling, the bulk of the market movement is driven by the capital size of FPIs and MFs.