What are cornerstone investors?

Cornerstone investors commit to subscribe before listing and usually accept a lock-up period.

Plain meaning

Their subscribed amount or stake is disclosed in the prospectus. They may include strategic investors, funds, sovereign funds or other institutions.

Why it matters

Cornerstones can improve deal certainty and reduce short-term free float, but quality varies. Strategic or long-term names usually carry more signal than weakly related capital.

How to read it

Check cornerstone ratio, lock-up, investor background, connected relationships, offer size and public demand. A high ratio can reduce float but may also reflect weaker market demand.

How it appears here

IPO detail pages list cornerstone investors, while the rating model uses cornerstone lock-up ratio and quality as supply-demand inputs.

Common mistakes

Assuming any cornerstone list means high quality.
Looking only at subscribed amount without background and lock-up.
Ignoring that a very high cornerstone ratio can distort float analysis.