anchor-investors-permitted-in-indian-ipos

Anchor investors permitted in Indian IPOs

In a move welcomed by market participants, India's capital markets regulator relaxes its equity issuance rules and, most significantly, will now allow issuers to bring anchor investors into first-time share sales.

India's stockmarket watchdog, the Securities and Exchange Board of India Sebi, last week announced new guidelines governing initial public offerings and follow-on offerings. In the most significant change announced, Sebi will now allow anchor investors to buy up to 30% of the portion reserved for qualified institutional buyers QIBs in an IPO.

Companies faced with a volatile market on the eve of issue launch, are most likely to make use of this provision, said Donald D'souza, president at India InfoLine investment banking. And, indeed, in its notice issuing the guideline Sebi clarified that the measure is intended to provide more certainty to IPOs launched in the prevailing volatile stock...

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