XYZ Ltd. is proposing to make a public issue of 400 crore equity shares through the book building mechanism where 50% of the issue size is required to be allotted to Qualified Institutional Buyers. Determine the quantum
CS Executive · Capital Markets & Securities Laws · PYQS · December 2017
XYZ Ltd. is proposing to make a public issue of 400 crore equity shares through the book building mechanism where 50% of the issue size is required to be allotted to Qualified Institutional Buyers. Determine the quantum available for allocation to anchor investors.
Answer & Explanation:
(B) (i) Computation of the quantum available for allocation to anchor investors Issue Size = 400 crore equity shares Portion available to QIBs = 50% = 200 crore equity shares Anchor Investor Portion = Upto 60% of the portion available to QIBs = 120 crore equity shares.
Topics: Public Issue and Book Building
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