<ul data-eligibleForWebStory="false"><li>Anchor investors are a special class of institutional investors introduced by SEBI in 2009 who invest in IPOs one day before they open to the public.</li><li>Only qualified institutional buyers (QIBs) like mutual funds, insurance firms, pension funds, and foreign investors, who can invest a minimum of ₹10 crore, qualify as anchor investors and can strongly influence pricing.</li><li>SEBI mandates a lock-in period for anchor investors, where 50% of the shares they receive are locked for 30 days and the remaining 50% for 90 days from the date of allotment to stabilize the IPO price post-listing.</li><li>Anchor investors contribute to price discovery, influence market sentiment, and their participation can provide valuable insights for retail investors considering IPO investments.</li></ul>

Simply Put: Anchor investors

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