Anchor investors in an IPO and their lock-in period

Updated 19 October 2026

Anchor investors are large institutions — mutual funds, insurers, foreign funds — who are allotted shares one working day before a mainboard IPO opens to the public.

How much they get

Up to 60% of the QIB portion can be allotted to anchors, at a price not lower than the price offered to the public. Part of the anchor portion is reserved for domestic mutual funds.

Why companies use them

A strong anchor book signals institutional confidence before the issue opens. The anchor allocation report, listing who got how many shares, is published on the exchange and linked on IPO pages here.

The lock-in

Anchor shares are locked in: under current SEBI rules, half of them cannot be sold for 30 days from allotment and the other half for 90 days.

Why lock-in expiry dates are watched

When a lock-in ends, a large block of shares becomes free to sell. That does not mean anchors will sell, but traders watch these dates because extra supply can weigh on the price, especially if the stock has risen sharply since listing.