Basic IPO FAQs

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.

What do you mean by IPO?

By whom the 'Price Band' is decided?

'Date of issue' is decided by whom?

What a registrar of an IPO does?

What is role of Lead managers in IPO?

What does 'follow on Public offering' or FPO means?

What are Primary market & Secondary market?

How can you define the life cycle of an IPO prospectus?

What are the life cycle of an IPO?

what are the basic differences between Book building and fixed price issue

How is Floor price different from Cut-off price for a book - building issue

Differentiate between RII,NII,QIB, & Anchor Investor

Retail investor, I would like to invest more than Rs 1 lakhs in an IPO. What is the best way to invest in the Non-institutional bidders' category? What are the pros and cons of investing in this category?

Is PAN number mandatory for applying in an IPO?

IPO remains open for how many days?

After submitting the application in IPO,what details I should keep?

For an IPO,what is the 'Market lot size' & 'Minimum Order quantity'?

Will I get guaranteed amount of shares if applying for an IPO?

Is investing in IPOs less riskier than in direct stock market?

Can someone apply through more than one application in IPO with the same name?