InvestorQ : What is the role of anchor investors and what do I need to evaluate?
Shreya Mashelkar made post

What is the role of anchor investors and what do I need to evaluate?

Answer
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Niti Shenoi answered.
2 years ago


Today most IPOs come with anchor investors who have already invested in these companies at an early stage. Check out the pedigree of these anchor investors. Typically, if you have the likes of Fidelity, Blackstone, Government of Singapore, and KKR among others, you can invest in such IPOs with a greater degree of confidence. Normally, anchor investors are brought on board by invitation to give a boost to the stock’s credibility. They also give an indication of the institutional interest in a stock. Ensure that the anchor investors are not exiting en masse as part of the IPO. That is not exactly a great sign.