What is the anchor investor concept?

The anchor investor is a recently introduced category of investor in the Initial Public Offer (IPO). A Qualified Institutional Buyer who gets firm allotment in an IPO of up to 30% of the institutional quota is an anchor investor. The lock-in period for such an investor is 30 days. This is done to instill a higher degree of confidence among the investing community, as an anchor investor is its brand ambassador.