Who is an anchor investor?

Qualified institutional investors who apply for IPO shares under an anchor reservation quota are called anchor investors.

Anchor investors include foreign portfolio investors, mutual funds, insurance companies and venture investors authorized by SEBI to apply for an IPO.

The windows for anchor investors open and close one day prior to the opening of the IPO. The minimum amount for an application under the anchor quota is Rs 10 Cr.

Anchor investors have a lock-in period of 30 days for 50% of the shares and 90 days for the remaining shares. This means that anchor investors cannot sell the shares allotted in an IPO until the lock-in period expires.