Anchor investors or cornerstone investors, are institutional investors, like mutual funds and pension funds, who are offered shares in an IPO a day before the offer opens. They ‘anchor’ the issue by agreeing to subscribe to shares at a fixed price to provide confidence to other potential IPO investors. The anchor investor can’t sell his shares for at least 30 days after the allotment. Anchor investors can bid for shares at anywhere within the price band declared by the company. An issuer can allot up to 60% of shares reserved for qualified institutional buyers (QIBs) to anchor investors.