IPOs
What is Anchor investor?
Hinglish mein padhein: Anchor investor kya hota hai?
Anchor investors are large institutions that commit to buy IPO shares a day before the issue opens to the public.
Their shares are locked in: 50% for 30 days and the rest for 90 days after allotment. Strong anchor names can boost confidence in an issue.
Watch the lock-in expiry dates — prices sometimes weaken when anchors are free to sell.
Related terms
- QIB, NII and RIIIPO shares are split into categories: QIBs (institutions), NIIs or HNIs (individuals and firms bidding above ₹2 lakh) and RIIs (retail, up to ₹2 lakh).
- IPO (Initial public offering)An IPO is when a private company sells shares to the public for the first time and lists them on a stock exchange.
- Lock-in periodA lock-in period is a time during which certain shareholders — promoters, anchors or pre-IPO investors — cannot sell their shares.