Around ₹170 crore worth of shares allotted to foreign portfolio investors (FPIs) in the anchor investors category ahead of the company’s listing were cancelled by the Indian Energy Exchange (IEX) on Wednesday owing to regulatory restrictions. However, the IPO of IEX got fully subscribed on the final day of the issue. The issue received bids for 1.20 crore shares as against an offer for 52.75 lakh shares.

The IPO, which aims to raise ₹1,001 crore, came out with a fixed price band of ₹1,645-1,650 a share.

“Under the rule, FPIs cannot buy any stake in an energy exchange from primary market. Therefore, FPIs may only be able to buy shares of IEX once it is listed,” a source close to the issue managers told Business Line.

The anchor investor book of IEX was reduced to ₹130 crore from around ₹300 crore due to cancellation of allotment. The ₹130 crore worth of shares were all subscribed by DIIs..

Institutional investors who are allotted shares ahead of IPO are anchor investors. Companies are required to set aside a proportion of the IPO shares for anchors who are part of qualified institutional buyers. IEX has set aside nearly half of its ₹1,000 crore worth of shares of IPO for QIBs.

IEX allocated about 18.20 lakh shares at ₹1,650 each to anchors to raise ₹300 crore on October 6, its exchange filing showed. Due to the regulatory confusion, the company revised the allocation to about 7.9 lakh shares at ₹1,650 each totalling ₹130 crore.

The company shifted ₹170 crore from anchor allocation to QIBs, whose share now stands at ₹370 crore.

Related Topics
comment COMMENT NOW