IPO Investing


Anchor Investors


(a) An Anchor Investor shall make an application of a value of at least Rs. 10 crore in the public issue.

(b) Allocation to Anchor Investors shall be on a discretionary basis and subject to the following:-

(i) Maximum of 2 such investors shall be permitted for allocation upto Rs. 10 crore;

(ii) Minimum of 2 and maximum of 15 such investors shall be permitted for allocation above Rs, 10 crore and upto Rs. 250 crore, subject to minimum allotment of Rs. 5 crore per such investor;

(iii) Minimum of 5 and maximum of 25 such investors shall be permitted for allocation above Rs. 250 crore, subject to minimum allotment of Rs. 5 crore per such investor.

(c) Upto thirty per cent of the portion available for allocation to qualified institutional buyers shall be available to anchor investor(s) for allocation/allotment (“anchor investor portion”).

(d) One-third of the anchor investor portion shall be reserved for domestic mutual funds.

(e) The bidding for Anchor Investors shall open one day before the issue opening date.

(f) Anchor Investors shall pay on application the same margin which is payable by other categories of investors the balance, if any, shall be paid within two days of the date of closure of the issue.

(g) Allocation to Anchor Investors shall be completed on the day of bidding by Anchor Investors.

(h) If the price fixed as a result of book building is higher than the price at which the allocation is made to Anchor Investor, the Anchor Investor shall bring in the additional amount. However, if the price fixed as a result of book building is lower than the price at which the allocation is made to Anchor Investor, the excess amount shall not be refunded to the Anchor Investor and the Anchor Investor shall take allotment at the price at which allocation was made to it.

(i) The number of shares allocated to Anchor Investors and the price at which the allocation is made, shall be made available in public domain by the merchant banker before opening of the issue.

(j) There shall be a lock-in of 30 days on the shares allotted to the Anchor Investor from the date of allotment in the public issue.

(k) Neither the merchant bankers nor any person related to the promoter/promoter group/merchant bankers in the concerned public issue can apply under Anchor Investor category. The parameters for selection of Anchor Investor shall be clearly identified by the merchant banker and shall be available as part of records of the merchant banker for inspection by SEBI.

(l) The applications made by qualified institutional buyers under the Anchor Investor category and under the Non Anchor Investor category may not be considered as multiple applications.


 

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Information provided herein is purely for dissemination of information and creating awareness among the investors about various aspects of investing. Although due care and diligence has been taken, the Institute of Company Secretaries of India (ICSI) shall not be responsible for any loss or damage resulting from any action taken by a person on the basis of the contents hosted on the website. It may also be noted that laws/regulations governing the markets are continuously evolving, hence an investor should familiarize himself with the latest laws/ regulations by visiting the relevant websites or contacting the relevant regulatory body.