New Delhi, Oct 11 (PTI) The initial public offer of Indian Energy Exchange elicited good response from investors, with the issue getting oversubscribed 2.23 times on the last day of bidding today.
Through the IPO, also the first by a power exchange in the country, the company aims to raise up to Rs 1,001 crore.
On the final day, the offer received total bids for 11,776,518 shares against 52,75,889 shares on offer, data available with the NSE till 1900 hours showed.
The price band for the offer is Rs 1,645-1,650 per share.
In a rare development, the company has revised the quantum of share allocation to anchor investors on account of regulations related to Foreign Portfolio Investors (FPIs).
“Pursuant to addendum dated October 10, 2017 no allotment shall be made against bids received from FPIs in the anchor investor portion,” a BSE notice today said with respect to the IEX share sale.
The company’s IPO committee of the Board of Directors in consultation with the book running lead managers to the offer has finalised revised allocation of 7,89,120 shares to anchor investors at a price of Rs 1,650 per share, the notice said.
Earlier, the company had alloted 18,19,501 equity shares to anchor investors at the same price.
Under regulations, FPIs are not permitted to invest in power exchanges through the primary market route.
“Post receipt of bids from anchor investors in the IEX offer, certain custodians have communicated to the BRLMs (book running lead managers) that FPIs shall not be eligible to participate.
“The company and the BRLMs discussed this development with the regulator in order to identify potential solutions.
However, as this has arisen late in the day and during the offer period, an appropriate solution could not be implemented in the short time span available,” IEX spokesperson said.
Accordingly, the additional shares, which were earlier to be allotted to FPI anchor investors are available for allocation in the QIB (qualified institutional buyer) portion.
“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 spokesperson said in a statement.
The company, along with the BRLMs, has decided to focus on domestic investors in order to avoid any changes to the offer timetable and achieve listing as anticipated, the spokesperson added.
Once the company’s shares are listed, FPIs can invest in them.
The IPO is of up to 60,65,009 shares (including anchor portion of 7,89,120 shares). Till yesterday, the IPO was subscribed 43 per cent.
Axis Capital, Kotak Mahindra Capital Company and IIFL Holdings are managing the company’s public issue.
This is published unedited from the PTI feed.