eMudhra IPO: Anchor Placement details
Last Updated: 9th December 2022 - 11:46 am
The anchor issue of eMudhra Limited saw a robust response on 19th May 2022 and the announcement was made late on Thursday. The IPO opens on 20th May 2022 in the price band of Rs.243 to Rs.256 and shall remain open for 3 working days and close on 24th May 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/FPO 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. It is just to give confidence to investors that the issue is backed by large established institutions. However, the anchor investors cannot be allotted shares at a discount.
Anchor placement story of eMudhra
On 19th May 2022, eMudhra Limited completed the bidding for its anchor allocation. There was a strong response as the anchor investors participated through the process of book building. A total of 48,37,336 (48.37 lakh shares approx.) shares were allotted to a total of 9 anchor investors comprising of 5 mutual fund schemes registered with SEBI and 4 foreign portfolio investors (FPIs) and others registered with SEBI. The allocation was done at the upper IPO price band of Rs.256 resulting in an overall anchor allocation of Rs.123.84 crore.
Listed below are the 9 anchor investors who have been allotted shares of eMudhra as part of the anchor allocation in the IPO. Out of the total anchor allocation of Rs.123.84 crore, the entire allocation was done to the 9 investors tabulated below.
No. |
Anchor Investor |
No. of Shares |
% of Anchor Portion |
Value Allocated |
1 |
Hornbill Orchid India Fund |
1,144,224 |
23.65% |
Rs.29.29 crore |
2 |
Baring Private Equity Fund |
604,708 |
12.50% |
Rs.15.48 crore |
3 |
Abakkus Growth Fund (2) |
539,516 |
11.15% |
Rs.13.81 crore |
4 |
Pinebridge India Equity Fund |
539,516 |
11.15% |
Rs.13.81 crore |
5 |
SBI Technology Opportunities Fund |
539,516 |
11.15% |
Rs.13.81 crore |
6 |
Nippon India Small Cap Fund |
539,516 |
11.15% |
Rs.13.81 crore |
7 |
Motilal Oswal Dynamic Fund |
390,824 |
8.08% |
Rs.10.01 crore |
8 |
Aditya Birla SL Digital India Fund |
269,758 |
5.58% |
Rs.6.91 crore |
9 |
Aditya Birla SL Small Cap Fund |
269,758 |
5.58% |
Rs.6.91 crore |
|
Total Anchor Allocation |
48,37,336 |
100.00% |
Rs.123.84 crore |
Data Source: BSE Filings
The strong response to the anchor portion is a good sign ahead of the IPO opening. The GMP may not be too reliable in the current market conditions due to the high levels of uncertainty and volatility in the markets. The QIB portion in the 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. EMudhra Limited, due to its unique positioning in the Indian psyche, its popular retail digital brand and its profitable operations has got interest from both FPIs and mutual funds. Since there are only 9 anchor investors in all for the issue, the entire list of anchors has been included in the anchor list above. There are no additional anchor investors other than the 9 mentioned above.
Out of the total 48.37 lakh shares allotted by way of anchor placement, EMudhra Limited allotted a total of 20.09 lakh shares to 5 domestic mutual fund schemes across 4 AMCs. The mutual fund allocation represents 41.54% of the overall anchor allocation.
The anchor allotment was finalized in consultation with the book running lead managers to the IPO of e-Mudhra Ltd viz. IIFL Securities Ltd, Yes Securities Ltd and Indorient Financial Services Ltd.
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