Nykaa, Policybazaar, Paytm To Face Selling Pressure As Anchor Lock-In Nears End

Shares of the parent firms of Nykaa, Policybazaar and Paytm are likely to face selling pressure as one-year anchor lock-in comes to an end next month.  

FSN E-commerce Ventures Ltd. (Nykaa), PB Fintech Ltd. (Policybazaar) and One97 Communications Ltd. (Paytm) have tumbled about 23%, 33%, and 21.4%, respectively, since the first week of August.

As of 9:56 a.m. on Thursday, FSN E-commerce Ventures and One97 fell 2.94% and 0.10%, respectively, on the BSE, while PB Fintech gained 0.56%.

The lock-in prevents anchor investors—large institutions roped in to generate demand ahead of an initial public offering—from selling shares for one year. A stock usually faces volatility towards the end of this period.

For FSN E-Commerce, the regulatory leash ends on Nov. 10, and for PB Fintech and One97 on Nov. 15 and Nov. 18, respectively.

Shares of Nykaa, which listed on the bourses at Rs 2,001, a 77.8% premium to its IPO price, have declined 49.6% since its listing, dropping below its IPO price of Rs 1,125 for the first time on Oct. 25.

Shares of PB Fintech, parent of policybazaar.com, have fallen 68% to Rs 384.25 apiece since its listing on Nov. 15 last year. The stock listed at Rs 1,150, a 17.3% premium to its IPO price of Rs 980.

One97 has fallen 58% since its listing to trade at Rs 656.4. The stock debuted the markets on Nov. 18 at Rs 1,955 per share, a 9% discount to the IPO price of Rs 2,150.