ANCHOR INVESTORS

1)Who are anchor investors?

Ans: Anchor investors are the one who invest in the IPO before the release of IPO to market

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2)Why anchor investor invest early?

Ans: They invest early to give confidence to other small investors that IPO is strong and also to get a good returns

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3)who are anchor investors?

Ans: Anchor investor are Mutual funds, insurance company, foreign investors

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4)How much percentage an anchor investor can invest?

Ans:50% of IPO is reserved for QIB(Qualified Institutional Buyers). 60% of 50% of QIB an anchor investor can invest

Example: IPO size =100RS

?????????????? 50% i.e. 50RS is reserved for QIB out of which 60% i.e. 30RS is an anchor investor can invest

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5)Rules from Sebi?

Ans: 30 days:-anchor cannot sell 50% of share before 30 days

???????? 90 days:-anchor cannot sell rest 50% of shares before 90 days