Harish Ltd. and Monish Ltd. are planning to float an IPO in March 2025 worth ₹ 600 crore and ₹ 500 crore respectively. Harish Ltd. is a pharmaceutical company and incorporated five years ago and is satisfying the conditi

Regulation 32 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, prescribes that the companies, who complies the requirement of regulation 6(1) the portion available for allocation shall be not more than 50% for QIBs, not less than 35% for retail individual investors and not less than 15% for non-institutional investors. Companies that do not meet the regulation 6(1) requirements, the portion available for allocation shall be not less than 75% to QIBs, not more than 15% to non-institutional investors and not more than 10% to retail individual investors. In an issue made through the book building process, the issuer may allocate up to sixty per cent. of the portion available for allocation to qualified institutional buyers to anchor investors. In case of Harish Ltd. which is satisfying the conditions of Regulation 6(1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the maximum number of shares to be issued to anchor investors are: Issue size = ₹ 600 crore Shares = 600/₹10 = 60 crore Reservation for QIB = 60 crore * 50% = 30 crore Allocation to anchor investor (out of QIB) = 30 crore * 60% = 18 crore In case of Monish Ltd., who is not satisfying the requirements of Regulation 6(1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the maximum number of shares to be issued to anchor investors are: Issue size = ₹ 500 crore Shares = 500/₹10 = 50 crore Reservation for QIB = 50 crore * 75% = 37.5 crore Allocation to anchor investor (out of QIB) = 37.5 crore * 60% = 22.5 crore