Anchor investors don't rock IPO boat, play long-term game

Anchor or cornerstone investors are institutional investors, such as mutual funds

Shares of Avenue Supermarts, the operator of D-Mart stores, dropped over five per cent on Tuesday after the 30-day lock-in for anchor investors ended. While doubling of the stock price of the retailer might have prompted some investors to make a quick buck, anchor investors typically invest for the long haul, if stock performance is to go by.

Analysis of stock prices' performance for IPOs listed since 2016 shows end of the lock-in period is not a telltale sign for buying or selling a stock. For instance, the average one-month returns for the top 15 IPOs since 2016 is 1.66