Public sector IPOs warm up to anchor investors a decade down the line

Centre for the first time exercises provision for IRFC issue

More than a decade after its introduction, the government has decided to use the provision of anchor allotment for initial public offering (IPO).

Indian Railway Finance Corporation (IRFC), whose Rs 4,600-crore IPO opens on Monday, has become the first offering by a public sector undertaking (PSU) to allot shares to anchor investors.

Industry sources say the government will use the provisions for most of the upcoming IPOs.

“For large IPOs like that of IRFC, getting anchor investors on board brings has benefits. You can get nearly a third of the issue covered even before the IPO opens. Also, if large marquee names invest