Anchor investor in Indian IPOs

Mon, 11 May 2026 00:00:00 +0000

An anchor investor in an Indian Initial Public Offering (IPO) is a qualified institutional buyer (QIB) that applies for shares in the IPO on the working day before the public subscription window opens, at a specific price called the anchor allocation price, and receives an allotment of shares before the general public has had an opportunity to bid. The anchor investor mechanism was introduced by SEBI through Schedule XIII of the SEBI (ICDR) Regulations, 2018 (originally notified under the 2009 ICDR and carried forward into the 2018 version) to provide a visible institutional endorsement of an IPO before the retail and NII subscription period opens, thereby reducing informational uncertainty for retail investors and potentially stabilising the listing-day price.

Institutional Investor on WebNotes

Anchor investor in Indian IPOs