Sebi scraps cap on anchor investors in public offers
12 Sept 2015 8:10 AM IST
With an aim to boost fund raising through primary markets, capital markets regulator Sebi has notified relaxed norms for public offers by removing <g data-gr-id="24">restriction</g> on <g data-gr-id="25">maximum number</g> of anchor investors. The present regulation limit the number of anchor investor at 15 if the public issue size is under Rs 250 crore and this can <g data-gr-id="23">increased</g> to 25 if the issue size is over Rs 250 crore.
In a notification, Securities and Exchange Board of India (Sebi) said it has removed the present restriction on the maximum number of anchor investors (currently 25) for anchor allocation of public issue worth over Rs 250 crore.
The requirement for the number of anchor investors for allocation of up to Rs 250 crore will remain the same but for issues above that size there could be 10 additional investors for every additional allocation of Rs 250 crore, subject to minimum allotment of Rs 5 crore per anchor investor.
“In case of allocation above Rs 250 crore, a minimum of 5 such investors and a maximum of 15 such investors for allocation <g data-gr-id="19">upto</g> Rs 250 crore and an additional 10 such investors for every additional Rs 250 crore or part thereof, shall be permitted, subject to a minimum allotment of Rs 5 crore per such investors,” Sebi said.
An anchor investor in market parlance refers to a qualified institutional buyer (QIB) making an application for a value of Rs 10 crore or more through the book-building process. Sebi, in 2009, introduced the concept of anchor investor in public issues in order to create a significant impact on pricing of initial public offers (IPOs).
Amtek <g data-gr-id="61">scrip</g> up 54%; Castex down 4.96%
Shares of Amtek Auto shot up 54 <g data-gr-id="48">per cent</g> on Friday as promoters infused Rs 75 crore in the company amid Sebi probing alleged rigging of stock of its subsidiary. Amtek Group company Castex Technologies, which is being probed, continued to face selling pressure. The stocks fell by 4.96 per cent.
In a regulatory filing, <g data-gr-id="46">Amtek</g> said it has allotted 44,37,500 equity shares of face value of Rs 2 each at a premium of Rs 167 aggregating to Rs 74.99 crore to promoters group companies via preferential allotment.
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