Anchor investors pick up their Adani Power IPO pie

First issue to attract investors under anchor investor scheme.

The initial public offer (IPO) of Adani Power seems to have caught the fancy of institutional investors. As many as six anchor investors have picked up the entire portion reserved under the anchor investor scheme for Rs 502 crore at Rs 95 per share.

The six anchor investors are T Rowe Price, AIC, Ecofin, TPG (through CLSA), Legg Mason and Sundaram MF. and this is the maximum permitted by market regulator Securities and Exchange Board of India (Sebi) under the anchor investor scheme.

With this, the Adani Power IPO has become the first issue in the country to attract investors under the anchor investor scheme.

“Of the 60 per cent of the net issue allotted to qualified institutional buyers (QIBs), a maximum of 30 per cent could be reserved under the anchor investor scheme. In this case, 30 per cent of the QIB quota that the six anchor investors have bought comes to 18 per cent of the total issue size,” said company officials.

As per Sebi norms, there is a 30-day lock-in for anchor investors. Adani Power, which opens for subscription on July 28, is issuing 30.16 crore shares in a price of band of Rs 90-100.

The company has reserved 80 lakh shares for employees. The net issue constitutes 13.47 per cent of the post-issue paid-up capital of the company.

Recently, in a pre-IPO deal, the company had placed shares worth around Rs 375 crore with 3i Power Investments A1 and Capital Trade & Investments.

Adani Power plans to use the proceeds of the IPO to fund power projects, which include Mundra Phase IV and Tiroda having capacity of 1,980 MW each.