Rategain Travel Technologies IPO - Anchor Placement Details
5paisa Research Team
Last Updated: 12th December 2022 - 10:36 am
The anchor issue of Rategain Travel Technologies Ltd saw a robust response on 06-December and the announcement was made late on Monday.
The IPO opens on 07-December in the price band of Rs.405 to Rs.425 and shall remain open for 3 days up to 09-December. 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.
It is just 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.
Check - Rategain Travel Technologies IPO - Subscription Day 1
Anchor placement story of Rategain Travel Technologies Ltd
On 06-December, Rategain Travel 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 1,40,90,136 shares were allotted to a total of 34 anchor investors.
The allocation was done at the upper IPO price band of Rs.425 which resulted in an overall allocation of Rs.598.83 crore.
Listed below are the 9 anchor investors who have been allotted more than 4% of the anchor allocation each in the IPO. Out of the total anchor allocation of Rs.598.83 crore, these 9 major anchor investor accounted for 68% of the overall anchor allocation.
|
Anchor Investor |
No. of Shares |
% of Anchor Portion |
Value Allocated |
|
Government of Singapore |
16,44,650 |
11.67% |
Rs.69.90 crore |
|
Nomura India Mother Fund |
14,11,795 |
10.02% |
Rs.60.00 crore |
|
Ashoka India Opportunities Fund |
14,11,795 |
10.02% |
Rs.60.00 crore |
|
Nippon India Flexi Cap Fund |
7,05,880 |
5.01% |
Rs.30.00 crore |
|
Goldman Sachs Fund |
14,11,795 |
10.02% |
Rs.60.00 crore |
|
Pinebridge Asia Fund |
9,41,255 |
6.68% |
Rs.40.00 crore |
|
ICICI Prudential Life |
7,05,915 |
5.01% |
Rs.30.00 crore |
|
SBI Life Insurance |
7,05,915 |
5.01% |
Rs.30.00 crore |
|
Nippon India Growth Fund |
6,82,360 |
4.84% |
Rs.29.00 crore |
Data Source: BSE Filings
With strong signals coming from the GMP with premiums of about 28%, the anchor response has been 44.83% of the total issue size. 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. Rategain has been a mix, getting good response from FPIs, sovereign funds, domestic mutual funds and insurances.
Among other domestic anchor investors were ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, Sundaram Mutual Fund and HSBC Mutual Fund.
Out of the total 140.90 lakh shares allotted by way of anchor placement, Rategain allotted a total of 42.35 lakh shares to domestic mutual funds.
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Sachin Gupta
5paisa Research Team
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