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Anchor Investor

A Qualified Institutional Buyer(QIB), applying in an IPO under the Anchor Investor Portion and who has Bid for an amount of atleast ₹10 Crore.

Anchor Investor definition

Introduced in 2009 by SEBI, an Anchor Investor is a Qualified institutions buyer who makes an application of a value of at least Rs. 10 crores or more in public issue made through Book building process.

Anchor investors are institutions that are allotted shares at a fixed price before the IPO opens to the public. Each investor is required to invest at least Rs 10 crore and the funds are subject to a 30-day lock-in period. Investment by anchor investors ahead of the IPO creates a buzz among retail investors. It is generally seen as a confidence booster as institutions make well-researched investment decisions.

Key highlights:

  1. An Anchor Investor can apply for value of at least Rs. 10 crores
  2. Up to 30% of the total issue size can be allotted to Anchor Investors
  3. One-third of the anchor investor portion can be reserved for domestic mutual funds
  4. Anchor Investors is offered shares in an IPO a day before the offer opens
  5. There is a lock-in period of 30 days on the shares allotted to the Anchor Investor so anchor investor can't sell his/her shares for at least 30 days after the allotment
  6. None of the family members, relatives, merchant banker or promoters can apply for shares under the anchor investor category
  7. If the price is fixed through the book building process is higher than the price at which shares were allotted to anchor investors, then these anchor investors have to bring in additional money. But if the book built price is fixed on lower than the price at which the allocation is made to Anchor Investor, the excess amount is not refunded to them.

Answered on

Frequently Asked Questions

  1. 1. Where can I find the list of Anchor Investors for an IPO?

    An IPO's Anchor Investors details are published in BSE Notices and NSE Circulars a day before the IPO opens for the public.

     


3 Comments

3. Chirag   I Like It. |Report Abuse|  Link|Nov 11, 2020 8:48:30 PMReply
From where shares of anchor investors come, is it from IPO shares or additional shares are released by company? If its from IPO then do they get counted in QIB portion.
3.1. suparna   I Like It. |Report Abuse|  Link|Nov 12, 2022 5:51:58 PM
https://www.chittorgarh.com/glossary/anchor-investor-portion/95/ Please refer to this - it is counted in QIB portion
2. Uday Gangurde   I Like It. |Report Abuse|  Link|Sep 6, 2021 4:44:13 AMReply
How to calculate anchor exit dates?
1. Yogesh   I Like It. |Report Abuse|  Link|Sep 16, 2020 8:26:03 PMReply
Anchor investor list kaha dekhne ko milti hai
1.1. Team Chittorgarh.com   I Like It. |Report Abuse|  Link|Oct 7, 2020 9:48:37 PM
Dear Mr Yogesh,
The anchor investors list is share by the lead manager with exchange a day before IPO opens for public. The exchanges publishes it on their website under circulars or notices section.