Laxmi Dental to Stallion India: 5 IPOs’ anchor lock-in expiry to free up stocks worth ₹400 cr in April. Do you own any?

The shares held by anchor investors of Denta Water and Infra Solutions, Stallion India Flurochemical, Laxmi Dental, Quadrant Future Tek, and Standard Glass Lining Technology, totaling ₹401 crore, will be released in April, as the 90-day lock-in period for stocks owned by them is about to end.

The lock-in expiration date for Denta Water and Infra Solutions is April 27, 2025. For Stallion India Flurochemicals, it will be April 21, 2025. Laxmi Dental has its lock-in date set for April 15, 2025. The expiry for Quadrant Future Tek is on April 9, 2025. Lastly, Standard Glass Lining Technology has a lock-in expiry date of April 8, 2025.

The period following the lock-in can increase the market supply of shares, potentially impacting stock prices in the short term, particularly if a significant number of anchor investors opt to exit.

Anchor investors may choose to either sell or retain their shares following the lock-in period, depending upon several factors, such as market conditions, the performance of the company, and their investment strategies. Anchor investors are not obligated to divest their shares after 90 days; they have the option to sell 50% of their holdings after 30 days and the remaining 50% after 90 days from the date of allotment.

The total shares locked in for Denta Water and Infra Solutions amount to 11,25,000; Stallion India Flurochemicals has 33,24,210; Laxmi Dental holds 36,69,709; Quadrant Future Tek possesses 22,50,000; and Standard Glass Lining Technology sees 43,93,407 shares locked in.

Stock Performance so far

With the exception of Quadrant Future Tek, which has risen by 100.9% since its debut, and Standard Glass Lining, which has increased by 8.5%, all other stocks are currently trading below their initial public offering prices.

Avinash Gorakshakar, who is the Head of Research at Profitmart Securities, pointed out that typically, stock prices tend to adjust once the three-month lock-in period concludes. However, if significant new buyers enter the market, it often results in a sell-off of those stocks by the anchor investors due to an error in judgment.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.