Anchor Investors:

Home   »  Anchor Investors:

April 18, 2024

Anchor Investors:

Why in News? Vodafone Idea (VIL) has  announced closure of its anchor book allocation, raising about Rs 5,400 crore from global as well as domestic investors ahead of its mega follow-on public offering (FPO).

Who is an anchor investor ?

  • An anchor investor is a qualified institutional buyer (QIB) who submits a bid for value of at least Rs. 1 crore or more in a mainboard IPO or Rs. 1 crore or more at SME IPO in the book building process. Bidding for anchor investors begins one day prior to the start of the issue.

QIB investors in an IPO include public financial institutions, banks, mutual funds and foreign portfolio investors, VCFs, AIFs and NBFCs who invest money on behalf of their clients.

 

The difference between an angel investor and an anchor investor:

·         An angel investor is an individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. These investors often provide not only financial support but also mentorship and guidance to the startups they invest in.

·         On the other hand, an anchor investor is usually a large institutional investor, such as a mutual fund or a pension fund, that makes a substantial investment in a company’s initial public offering (IPO) to demonstrate confidence in the company’s future prospects. The presence of an anchor investor can help attract other investors to participate in the IPO.

What is An IPO (Initial Public Offering)?

·         It is a process through which a private company offers its shares to the public for the first time.

·         Mainboard IPO: Mainboard IPO typically refers to the initial public offering of shares by large, well-established companies that meet the listing requirements of the mainboard of a stock exchange.

·         SME IPO: SME IPO stands for Small and Medium Enterprises IPO. SME IPOs cater to smaller companies that may not meet the stringent requirements for listing on the mainboard of a stock exchange.

 

 

 


Get In Touch

B-36, Sector-C, Aliganj – Near Aliganj, Post Office Lucknow – 226024 (U.P.) India

vaidsicslucknow1@gmail.com

+91 8858209990, +91 9415011892

Newsletter

Subscribe now for latest updates.

Follow Us

© www.vaidicslucknow.com. All Rights Reserved.

Anchor Investors: | Vaid ICS Institute