An anchor investor in called an individual who builds an application for a price of Rs 10 crore or more through the book-building process. these investors attract many other to the IPO to boost their confidence before they hit the market.
Up to 60 percent of IPO are reserved under QIB Category and the price of the share is determined separately. The Anchor investors have different Anchor Investor Bid and Offer Period.the merchant banker, relatives, or promoters cannot apply for shares in this category.
If the offer size is less than Rs 250 crore, maximum 15 anchors can invest and if the offer size is above 250 crores, there is no fixed number of investors.