Home World Business IEX cancels anchor allotment to overseas investors

IEX cancels anchor allotment to overseas investors


IEX finalised allotment of shares worth Rs 300 cr in the anchor category to clutch of domestic, overseas investors

BS Reporter  |  Mumbai  Last Updated at October 11, 2017 23:12 IST

IEX cancels anchor allotment to overseas investors
Indian Energy Exchange (IEX) has revoked the allotment made to foreign portfolio investors (FPIs) in the anchor category. The move was triggered by a communication from the custodians that were not eligible to participate in the initial public offering (IPO). 

On Friday, had finalised allotment of shares worth Rs 300 crore in the anchor category to a clutch of domestic and overseas investors. Some of the allotted shares included JP Morgan, Nomura and Baillie GiffordIEX. 

The shares allotted to these investors will now be offered to institutional investors that bid in the qualified institutional buyer (QIB) category of the  

IEX’s Rs 1,000-crore IPO, which closed on Wednesday, was subscribed over two times. The category too saw over two times demand the shares on offer. 

“The company has issued a public notice (an addendum) that additional shares, which were earlier to be allotted to FPI Anchor Investors have now become available for allocation in the portion of the Offer,” said a company spokesperson in a statement. 

Investment bankers said there was enough demand in the to absorb the shares earlier allotted to in the anchor book. 

“The company would like to reiterate that this development is arising out of regulatory concerns raised by the custodians rather than any pricing concern. The anchor book, which is available in the public domain, identifies the calibre of investors who were interested in participating in the offer and shows their confidence in the company,” the statement added. 

will be able to buy shares of in the secondary market once the company lists, they added. 

is India’s largest power trading exchange. As per the FDI policy, are only allowed buy shares of a power trading exchange in the secondary market. 

First Published: Wed, October 11 2017. 22:53 IST


Please enter your comment!
Please enter your name here