Anchor investor means a Qualified Institutional Buyer (QIB) who makes an application for a value of at least 10 crore rupees in a public issue on the main board made through the book building process or makes an application for a value of at least Rs. 2 crore for an public issue on the SME exchange made in accordance with Chapter IX of the SEBI (ICDR) Regulations, 2018.
Allocation to anchor investors shall be on a discretionary basis and subject to the following:
- In case of public issue on the main board, though the book building process:
- Maximum of 2 such investors shall be permitted for allocation upto Rs.2 crore.
- Minimum of 2 and maximum of 15 such investors shall be permitted for allocation above Rs.2 crore and upto Rs. 25 crore, subject to minimum allotment of Rs.1 crore per such investor.
- In case of allocation above Rs.25 crore; a minimum of 5 such investors and a maximum of 15 such investors for allocation upto Rs.25 crore and an additional 10 such investors for every additional Rs.25 crore or part thereof, shall be permitted, subject to a minimum allotment of Rs.1 crore per such investor.
- In case of public issue on the SME exchange, through the book building process:
- Maximum of 2 such investors shall be permitted for allocation up to two crore rupees;
- Minimum of 2 and maximum of 15 such investors shall be permitted for allocation above 2 crore rupees and up to 25 crore rupees, subject to minimum allotment of 1 crore rupees per such investor;
- In case of allocation above 25 crore rupees; a minimum of 5 such investors and a maximum of 15 such investors for allocation up to 25 crore rupees and an additional 10 such investors for every additional 25 crore rupees or part thereof, shall be permitted, subject to a minimum allotment of 1 crore rupees per such investor.
The bidding for anchor investors shall open one day before the issue opening date. Allocation to Anchor Investors shall be completed on the day of bidding by Anchor Investors.
Shares allotted to the Anchor Investor shall be locked-in for 30 days from the date of allotment in the public issue. (Upto 60% of the portion available for allocation to QIB shall be available to anchor investor(s) for allocation/ allotment (“anchor investor portion”) and one-third of the anchor investor portion shall be reserved for domestic mutual funds.)