Anchor Investors

Out of the portion available for allocation to Qualified Institutional Buyers, up to 30% may be allocated to Anchor Investors subject to the following:

• Anchor Investors shall necessarily be Qualified Institutional Buyers as defined in these guidelines.
  
• The minimum application size by an Anchor Investor shall be Rs.10 crore.
  
• One-third of the Anchor Investor portion shall be reserved for domestic mutual funds.
  
• The bidding for Anchor Investors shall open one day before the issue opens and shall be completed on the same day.
  
• Allocation to Anchor Investors shall be on a discretionary basis subject to minimum number of 2 investors for allocation of upto Rs.250 crore and 5 investors for allocation of more than Rs.250 crore.
  
• 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.
  
• If the price fixed for the public issue through book building process is higher than the price at which the allocation is made to Anchor Investors, the additional amount shall be paid by the Anchor Investors. However, if the price fixed for public issue is lower than the price at which the allocation is made to Anchor Investors, difference shall not be payable to the Anchor Investors.
  
• There shall be a lock-in of 30 days on the shares allotted to the Anchor Investors from the date of allotment in the public issue.
  
• No person related to the book running lead managers/ promoters/promoter group in the concerned public issue or the book running lead managers to the concerned public issue can apply under Anchor Investor category.
  
• The parameters for selection of Anchor Investors shall be clearly identified by the merchant banker and shall be available as part of records of the merchant banker for inspection by SEBI.
  
• The applications made by Qualified Institutional Buyers under Anchor Investor category and under Non Anchor Investor category may not be considered as multiple applications.