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The initial public offer (IPO) of Indian Energy Exchange has been oversubscribed 2 times so far on the last day of bidding today.
The IPO, which aims to raise Rs 1,001 crore, received bids for 1,09,31,103 shares against 52,75,889 shares on offer, data available with the NSE till 1600 hrs showed. This is also the first initial share sale by a power exchange in the country.
Meanwhile, the company has announced revised allocation to anchor investors. "Pursuant to addendum dated October 10, 2017 no allotment shall be made against bids received from FPIs (foreign portfolio investors) in the anchor investor portion.
"The IPO committee of the Board of Directors of the company at its meeting held on October 10, 2017, 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 shares," as per a BSE notice dated today.
Earlier, the company had alloted 18,19,501 equity shares to anchor investors at a price of Rs 1,650 per share. "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," Indian Energy Exchange spokesperson said in a statement.
Accordingly, the company has issued a public notice (an addendum) that additional shares, which were earlier to be allotted to FPI anchor investors have now become available for allocation in the QIB (qualified institutional buyer) portion of the offer.
"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 added.
The company, along with the BRLMs, has decided to focus on domestic investors in order to avoid any changes to the offer time
Under the regulations, FPIs are not permitted to invest in power exchanges through the primary market route. 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.
IEX plans to raise Rs 1,001 crore through its initial share sale offering. It has fixed the price band of Rs 1,645- 1,650 per share for the issue. Axis Capital, Kotak Mahindra Capital Company and IIFL Holdings are managing the company's public issue.
IEX is India's first power exchange providing automated trading platform for electricity (for physical delivery) and renewable energy certificates.
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