How is anchor investor different from QIB?

QIB (Qualified institutional Buyer) is an anchor investor. An IPO's anchor investor role and eligibility is different.

1. A anchor investor must invest more than Rs 10 Crore.
2. Anchor investors have different bid prices and bidding windows. They bid earlier than normal QIBs.
3. An anchor investor can receive up to 60% of QIB allocation.
4. An anchor investor cannot sell shares within 30 days of receiving the allotment.
5. Anchor investors can bid for shares in the price range set by the company. The company determines the share price on the day of allotment. The company must pay any difference if the allotment price exceeds the amount paid by anchor investors. With more funds. Anchor investors are not entitled to a refund if the price falls.

The bidding process is led by anchor investors, as the name implies. Anchor investors provide reliable signals to other investors by their participation or absence. When an IPO has strong anchor investors, it encourages other investors apply for the IPO.