Neel Ltd. proposes to make a public issue of 800 crore equity shares of ₹ 10 each through book building mechanism, where 50% of the issue size is required to be allotted to Qualified Institutional Buyers.Determine:The am
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · June 2025
Neel Ltd. proposes to make a public issue of 800 crore equity shares of ₹ 10 each through book building mechanism, where 50% of the issue size is required to be allotted to Qualified Institutional Buyers.Determine:The amount, if any, to be brought in by anchor investors, if the price at which allocation is made to anchor investors is ₹ 435 per share and the price in the book building process is ₹ 440 per share.
Answer & Explanation:
Computation of amount required to be brought in by Anchor Investors, when Book building price is ₹440 and Anchor Investor price is ₹435 If the price fixed as a result of book building is higher than the price at which the allocation is made to the anchor investors, the anchor investors shall pay the additional amount. Since the Book Building price is higher than Anchor Investor price, the Anchor investor has to bring the additional amount of ₹5 per share. That is, the Anchor Investors have to pay ₹440 per share.
Topics: Corporate Funding & Listings
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