The Securities and Exchange Board of India (SEBI) on Thursday introduced the concept of an anchor investor (AI) through an announcement made after its board meeting. An anchor investor is a strategic investor, who would be allowed to pick up a chunk of the shares on sale in initial public offerings (IPOs).
Sebi announced that an issuer making a public issue of shares through book building may allocate on a discretionary basis up to 30 per cent of the qualified institutional buyer (QIB) portion of the issue to anchor investors, who is are QIBs. This amounts to 15 per cent of the total size of an IPO. Firm allotment would be made to anchor investors.
HT had reported on Monday that SEBI was mulling over the introduction of this concept.
“The minimum size of application by AIs would be Rs 10 crore. They would bring in a margin of 25 per cent on application and the balance 75 per cent within two days of the date of closure of the public issue,” said CB Bhave, chairman, Sebi.