Innovations in financing: The impact of anchor investors in Indian IPOs

Arnab Bhattacharya, Binay Bhushan Chakrabarti, Chinmoy Ghosh, Milena Petrova

Research output: Contribution to journalArticlepeer-review

6 Scopus citations


In 2009, the Securities Exchange Board of India allowed qualified institutional investors to anchor initial public offerings (IPOs) by participating in the issue at a price and allocation publicly disclosed preceding the issue. We study anchor investors (AIs) in Indian IPOs during 2009–2017. We find the share allotment and the number of AIs separately have significant impacts on valuation and underpricing; however, the net effect is nonsignificant. Further, AIs significantly influence other institutional investors' participation in the IPO and induce lower aftermarket volatility. Overall, our evidence suggests that AIs boost demand for and mitigate ex ante information uncertainty of IPOs.

Original languageEnglish (US)
Pages (from-to)1059-1106
Number of pages48
JournalEuropean Financial Management
Issue number4
StatePublished - Sep 1 2020


  • IPOs
  • anchor investors
  • certification
  • information uncertainty

ASJC Scopus subject areas

  • Accounting
  • Economics, Econometrics and Finance(all)


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