Sign In
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
New Delhi: Indian stock market regulator SEBI has increased the share of anchor investors in IPO from 33% to 40%. In this, 33% will be given to mutual funds and 7% to insurance and pension funds. Now 5 to 15 investors will be allowed in IPOs of up to Rs 250 crore. The new guidelines will come into effect from November 30, 2025, which will encourage long-term institutional investment.
In this regard, a notification issued by SEBI states that now the reserve quota for institutional investors in IPO up to 250 rupees will be 40%. In this, 33% will be for mutual funds and 7% for insurance and pension funds. If this part of 7% is not paid by the notified investors, it will be allotted to the mutual funds.
SEBI has also announced to increase the maximum limit for anchor investors. Now, for IPOs with anchor books of more than Rs 250 crore, the investor limit has been increased from 10 to 15 percent. There will be a minimum of 5 and a maximum of 15 anchor investors for allocation of up to Rs 250 million. After this, 15 additional investors will be allowed for every additional 250 million rupees, provided each investor gets an allocation of at least 5 million rupees.
Previously, there were two categories in the anchor allotment. Category I includes investors up to Rs 10 crore. At the same time, investors ranging from Rs 10 crore to Rs 250 crore are included in category II. Now SEBI has merged these two into one category. That is, for an allotment of up to Rs 250 million, there will be a minimum of 5 and a maximum of 15 investors. Apart from this, a minimum allocation of Rs 5 million will be made to each of them.
SEBI has stated in the notification that the changes made in the Issue of Capital and Disclosure Requirements (ICDR) rules will be effective from November 30, 2025. This change will help attract institutional capital in the IPO market for the long term, which will make price discovery more transparent and also give better confidence to retail investors.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
