Adani Wilmar IPO - Anchor Placement Details
5paisa Research Team
Last Updated: 10th December 2022 - 05:52 am
The anchor issue of Adani Wilmar Ltd saw a robust response on 25-January 2022 and the announcement was made late on Tuesday. The IPO opens on 27-January 2022 in the price band of Rs.218 to Rs.230 and shall remain open for 3 days and close on 31-January 2022. Let us focus on the anchor allotment portion ahead of the IPO.
Before we go into the details of the actual anchor allotment, a quick word on the process of anchor placement. The anchor placement ahead of an IPO is different from a pre-IPO placement in that the anchor allocation has a lock-in period of just one month, although under the new rules, part of the anchor portion will be locked in for 3 months, although that will only be effective from April 2022.
Anchor allotment is meant to give confidence to investors that the issue is backed by large established institutions. However, the anchor investor cannot be allotted shares at a discount.
Anchor placement story of Adani Wilmar Ltd
On 25-January 2022, Adani Wilmar Ltd completed the bidding for its anchor allocation. There was a tremendous response as the anchor investors participated through the process of book building. A total of 4,08,65,217 shares were allotted to a total of 15 anchor investors. The allocation was done at the upper IPO price band of Rs.230 which resulted in an overall allocation of Rs.939.90 crore.
Listed below are the 10 anchor investors who have been allotted more than 2% of the anchor allocation each in the IPO. Out of the total anchor allocation of Rs.939.90 crore, these 10 major anchor investor accounted for 93.25% of the overall anchor allocation.
|
Anchor Investor |
No. of Shares |
% of Anchor Portion |
Value Allocated |
|
Government of Singapore |
1,60,27,180 |
39.22% |
Rs.368.63 crore |
|
Monetary Authority of Singapore |
35,38,015 |
8.66% |
Rs.81.37 crore |
|
Nippon India Small Cap Fund |
32,60,855 |
7.98% |
Rs.75.00 crore |
|
Winro Commercial Ltd |
32,60,855 |
7.98% |
Rs.75.00 crore |
|
Dovetail India Fund |
32,60,855 |
7.98% |
Rs.75.00 crore |
|
Jupiter India Fund |
26,72,930 |
6.54% |
Rs.61.48 crore |
|
Volrado Venture Partners |
20,82,837 |
5.10% |
Rs.47.91 crore |
|
HDFC Large & Midcap Fund |
19,36,740 |
4.74% |
Rs.44.55 crore |
|
HDFC Balanced Advantage Fund |
11,06,690 |
2.71% |
Rs.25.45 crore |
|
Cohesion India Best Ideas |
9,56,475 |
2.34% |
Rs.22.00 crore |
Data Source: BSE Filings
With stable signals coming from the GMP with premiums of about 21.7%, the anchor response has been 26.11% of the total issue size. The QIB portion in the Adani Wilmar IPO will be reduced to the extent of the anchor placement done above. Only the balance amount will be available for QIB allocation as part of the regular IPO.
The general norm is that, in anchor placements, smaller issues find it hard to get FPIs interested while larger issues do not interest mutual funds. Adani Wilmar Ltd has seen a mix, getting good response from FPIs, and domestic mutual funds. Among other investors not mentioned in the above list included South Asia Access Fund, Birla Small Cap Fund, Sun Life Excel India Fund and Societe Generale.
Out of the total 408.65 lakh shares allotted by way of anchor placement, Adani Wilmar Ltd allotted a total of 68.70 lakh shares to domestic mutual funds, representing 16.81% of the overall anchor allocation. Being a joint venture between the Adani Group and Wilmar of Singapore, Adani Wilmar elicited a huge anchor response from the Government of Singapore and the Monetary Authority of Singapore.
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Sachin Gupta
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