Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

Why are anchor investors given shares before the IPO opens?

Anchor Investors subscribe a sizeable portion of the IPO one day prior to the IPO opens for the public subscription. Anchor investments influence the price discovery, mitigate the risk of under-subscription and volatility at listing. Their participation enhance the credibility of the IPO and boost investors’ confidence  of retail, HNI and QIB Investors.

Why are anchor investors given shares before the IPO opens?