Anchor investors in an IPO: who they are and what the lock-in means

Anchor investors are large institutions (mutual funds, insurers, pension and foreign funds) that are allotted shares a day before the IPO opens to the public. Up to 60% of the QIB portion can be reserved for them, and each anchor must invest a minimum amount set by SEBI (generally ₹10 crore for larger issues, lower for smaller ones).

Why do they matter?

• A strong anchor list signals that serious institutions accepted the price.
• It lets the company fix the price with more confidence before retail bids come in.

Lock-in

Anchor shares cannot be sold immediately: 50% are locked in for 30 days and the rest for 90 days from allotment. When a lock-in ends, a large number of shares can become tradable, which sometimes weighs on the price.

How to read an anchor list

1. Look for long-term, well-known institutions rather than only unfamiliar entities.
2. See what share of the issue is anchor-allotted.
3. Note the lock-in end dates.

An anchor list is a useful signal but not a guarantee of a good listing or a good business.

Frequently asked questions

Do anchors get a better price?

They are allotted at a single price decided with the lead managers before the issue opens, usually the upper end of the band.

Last updated 2026-10-20. Information only, not investment advice.