Pipavav gets Rs920 mn from anchor investors

Pipavav gets Rs920 mn from anchor investors

Mumbai: Private shipbuilder Pipavav Shipyard Ltd said on Tuesday it received commitment of Rs920 million from six anchor investors.

The Securities and Exchange Board of India approved the “anchor investor" concept in June, under which an investor can subscribe to up to 30% of the quota for institutional investors in an initial public offering.

The anchor investors include Commonwealth Equity Fund Limited, India Diversified (Mauritius) Limited and Marshal India Select Fund Limited.

The anchor investors subscribed to the IPO at Rs60 a share, the higher range of the price band.

Under SEBI rules, an anchor investor would pay 25% of the total investment at the time of applying for the initial public offering, and the balance within two days of the closure of the issue.

Pipavav Shipyard is planning to raise over Rs5 billion through its IPO which opens on Wednesday.

It had set a price band of Rs55 to 60 a share for its proposed issue of 85.5 million shares.