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Anchor Investors

Anchor investors are the primary investors in an initial public offering (IPO). According to recent SEBI recommendations, only banks and public financial institutions are eligible to be anchor investors in IPOs.

Key SEBI Recommendations for Anchor Investors:

  1. Minimum Net Worth: The Bimal Jalan Committee recommended a minimum net worth of 1,000 crores for entities seeking to become anchor investors.

  2. Identification in Application: Anchor investors should be identified in the IPO application itself when seeking permission to become anchor investors.

  3. Maximum Number: The maximum number of anchor investors in a public issue is limited to 25 for issues up to 250 crores.

  4. Additional Allocation: For every additional allocation of 250 crores, there can be ten additional anchor investors, subject to a minimum allotment of 5 crores per anchor investor.

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