The anchor investors book for the Rs 16.5 Billion SKS Microfinance’s IPO has been oversubscribed 10-15 times said market sources who cannot be named because they do not have permission to speak to the media. SKS Microfinance’s IPO has received strong interest from institutional investors and there will be about 12–16 top quality anchor investors added the source.
The anchor investor is a recently introduced category by SEBI in the Initial Public Offer (IPO). An Anchor Investor is usually a Qualified Institutional Buyer who gets firm allotment in an IPO of up to 30% of the institutional quota.The lock-in period for such an investor is 30 days. This is done to instill a higher degree of confidence among the investing community, as an anchor investor is like its brand ambassador.
The minimum size of application for anchor investors is Rs 10 crore; and their margin payable on application is 25 per cent and the balance 75 per cent needs to be paid within 2 days of the date of closure of the public issue.
Most bids by Anchor Investors have come in closer to the top end of a Rs 850 to Rs 985 price band.The bookbuilding of the Qualified Institutional Buyers portion will start on the 28th of July and close on July 30.