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Anchor Investors

Updated on March 17, 2023

Anchor investors are investors in the QIB (qualified institutional buyers) category who bid a minimum of Rs. 10,00,00,000 under any public issue. This category of investors was introduced in the Indian stock markets in 2009.

Key features of anchor investors

Some of the key features of anchor investors are mentioned below.

a. Minimum application by anchor investors should be Rs. 10,00,00,000
b. Maximum 60% of the QIB category can be subscribed by anchor investors
c. Maximum of 30% of the entire issue can be allotted to anchor investors
d. Anchor investors are offered subscription to shares one day prior to the opening of the issue.
e. Anchor investors cannot be any of the family members, relatives, merchant bankers, or promoters of the company
f. Anchor investors can offload half of their holdings in the company after an initial lock-in period of 30 days from the date of allotment, balance half can be offloaded after completion of 90 days from the date of allotment.