Also Read: Sebi eases minimum public offer norms, minimum public shareholding timelines for large IPOs
Until now, reservation in the anchor book was exclusively available to mutual funds. Under the revised framework, life insurance companies registered with IRDAI and pension funds registered with PFRDA will now be included in the reserved anchor portion, bringing greater inclusivity and stability to IPO fund-raising.
The decision was taken in a Sebi board meeting held today and chaired by Chairman Tuhin Kanta Pandey, his third since taking over as the chief in March.
Sebi has also streamlined the anchor allotment structure where the two existing categories for discretionary allotment — Category I (up to Rs 10 crore) and Category II (above Rs 10 crore and up to Rs 250 crore) — have been merged into a single bucket for allocations up to Rs 250 crore.
For such issues, there will be a minimum of 5 and a maximum of 15 anchor allottees, with each investor required to receive at least Rs 5 crore worth of shares. For every additional Rs 250 crore of allocation, 15 more anchor allottees will be permitted.Further, Sebi has increased the overall reservation for the anchor portion from one-third to 40%. Of this, one-third will remain earmarked for domestic mutual funds, while the balance will go to insurance companies and pension funds.If there is under subscription in the reserved portion for insurers and pension funds, the shortfall will be reallocated to mutual funds.
The move is aimed at diversifying the IPO investor base, enhancing stability, and aligning the framework with global practices by bringing in large, patient capital from insurance and pension funds.
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