Nykaa and Policy Bazaar slide as one-year lock-in period nears end

Selling pressure is seen whenever the lock-in period meant for IPO anchor investors ends, particularly in companies backed by private equity investors

The share price of FSN E-Commerce Ventures, the parent company of Nykaa, ended below the stock's IPO price for the first time since its listing. The stock on Tuesday closed at Rs 1,111, down 2.9 per cent over previous day’s close. So far this month, Nykaa’s shares have declined nearly 13 per cent. Shares of PB Fintech, the company which operates Policy Bazaar portal, too have corrected nearly 20 per cent this month. Shares of Policy Bazaar, which got listed a few days after Nykaa, last closed at Rs 385.

The sharp selloff in these two stocks has come ahead