The issue from Inox Wind Limited which is tapping the capital markets with its issue to raise Rs 700 crs and an offer for sale of 1 cr shares completed its allocation to anchor investors. The price band of the issue is Rs 315-325 and there is a discount of Rs 16 to eligible employees and retail investors. The anchor portion was upto 60% of the QIB bucket which in this case was 50%. This is the first issue after Ortel and Adlabs where the entire permissible quota to anchor investors was allocated.

The company allotted 94,25,467 shares to 16 anchor investors comprising of 37 entities at the top end of the band. This is in stark contrast to the allocation of a mere 28.11% in the case of Ortel Communications and a dismal 13.39% in the case of Adlabs Entertainment. To add insult to injury, both issues were priced at the lowest price of the band while Adlabs had to lower the price band after failing to receive adequate response. The case of Adlabs saw the band reduced from Rs 221-230 to Rs 180-215 and the issue was finally subscribed at Rs 180.

If the merchant bankers and their advisors had taken proper feedback and priced the issue less aggressively all the heartburn, heart attacks and ignominy of failure and subsequent re-pricing could have been avoided.

Coming back to Inox Wind, very clearly strong message from the anchor book telling investors the degree of comfort that they (Anchor Investors) have in the company. Some of the marquee names include Sundaram Mutual Fund, IDFC, SBI, Blackrock, Morgan Stanley, Birla Sunlife, Kotak and Goldman Sachs.

Retail investors must apply for the minimum one lot of 45 shares as I believe the retai portion is likel;y to be subscribe 1.8 to 2.2 times on lot basis.