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‡ SEBI (Securities and Exchange Board of India) introduced

the concept of ³anchor investor´dated July 9, 2009.
‡ Anchor investors are entities which are offered, and
subscribed to, shares in an IPO, day before the offer opens
to the public.
‡ Anchor investors belong to the Qualified Institutional
Buyers (QIBs) category, which include mutual funds,
foreign institutional investors, banks, and venture capital
funds - domestic and international provident
and pension funds.
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‡ Sets a rough benchmark / guideline for issue pricing and

interest from QIBs.
‡ Attracting investors to public offers before they hit the
market to infuse a measure of confidence.
‡ Volume and value of anchor subscriptions may serve as an
indicator of the company's reputation and soundness of the
offer.
‡ The IPO of Adani Power was the first in India to use
anchor investors.
‡ Adani Power roped in six anchors to raise about Rs 500
crore while Pipavav Shipyard secured Rs 92 crore from
some top anchor investors.
‡ Coal India Limited (CIL) decide on the anchor investors
for its upcoming initial public offering (IPO) through
which the government expects to raise up to Rs. 15,000
crore.
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‡ Individual investors, NRI's, companies, trusts etc who bid

for more then Rs 1 lakhs are known as Non-institutional
investors.
‡ They need not to register with SEBI.
‡ Non-institutional bidders have an allocation of 15% of
shares of the total issue size
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‡ Individual investors who buy and sell securities for their

personal account, and not for another company or
organization.
Also known as an "individual investor" or "small investor³
‡ Retail investors can not apply for more then Rs 1,00,000 in
an IPO.
‡ Retail investors have an allocation of 35% of shares of the
total issue size.
‡ The current investment limit of Rs 1 lakh for retail
investors should be enhanced to Rs 2 lakh. SEBI has
invited comments from public by September 3, 2010.
(source: - www.otcstockexchange.com)