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Informist, Friday, Sept. 12, 2025

 

--SEBI permits more anchor investors for allocation above INR 2.5 bln in IPO

--SEBI: IPO anchor norms tweak to allow for large FPIs with multiple funds

 

NEW DELHI – The board of the Securities and Exchange Board of India Friday approved proposed amendments to issue of capital and disclosure requirement regulations to enhance the inclusive participation of institutional investors, particularly foreign portfolio investors, in the initial public offering process. The board, however, did not proceed with an earlier proposal to cut the retail investor category allocation to 25% from 35% in large IPOs of issue size above INR 50 billion. It also did not proceed with another proposal to raise the qualified institutional buyers category allocation to 60% from 50%.

 

To accommodate large foreign portfolio investors operating multiple funds, who currently face allocation limits, SEBI has decided to increase the number of permissible anchor investor allottees for allocations above INR 2.50 billion. Starting with 5-1 permissible anchor investor allottees for allocations below INR 2.5 billion, every additional INR 2.5 billion or part thereof of allocation, an additional number of 15 investors, instead of the current 10 investors, will be permitted subject to a minimum allotment of INR 50 million per investor, SEBI said in a press release.

 

In the discretionary allotment under anchor investor portion for category 1, up to INR 100 million, and for category 2, above INR 100 million and up to INR 2.5 billion, SEBI has decided to merge them into a single category for allocations up to INR 2.5 billion across 5-15 allottees with minimum allotment of INR 50 million per investor. The overall reservation of the anchor investor portion has been raised to 40% from 33% for life insurance companies, pension funds, and domestic mutual funds. "Of this, one-third will continue to be reserved for domestic mutual funds," SEBI said.  End

 

Reported by Rajesh Gajra

Edited by Avishek Dutta

 

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