CMS Info Systems Ltd IPO - Anchor Placement Details

CMS Info Systems Ltd IPO - Anchor Placement Details

IPO
by 5paisa Research Team Last Updated: Dec 21, 2021, 09:59 PM IST

The anchor issue of CMS Info Systems Ltd saw a robust response on 20-December and the announcement was made late on Monday. The CMS Info Systems IPO opens on 21-December in the price band of Rs.205 to Rs.216 and shall remain open for 3 working days up to 23-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.
 

Anchor placement story of CMS Info Systems Ltd


On 20-December, CMS Info Systems Ltd completed the bidding for its anchor allocation. There was a good response. A total of 1,52,77,777 shares were allotted to 12 anchor investors at the upper IPO price band of Rs.216 valued at Rs.330 crore, or 30% of the issue size of Rs.1,100 crore.

Listed below are the 12 anchor investors who have been allotted the anchor allocation in the IPO. Out of the total anchor allocation of Rs.330 crore, these 12 anchor investor accounted for 100% of the overall anchor allocation.
 

No.

Anchor Investor

No. of Shares

% of Anchor Portion

Value Allocated

01

Nomura India Mother Fund

23,14,812

15.15%

Rs.50 crore

02

SBI Small Cap Fund

23,14,812

15.15%

Rs.50 crore

03

WF Asia Reconnaissance Fund

23,14,812

15.15%

Rs.50 crore

04

Goldman Sachs India Equity

14,81,430

9.70%

Rs.32 crore

05

SBI Life Insurance

13,88,832

9.09%

Rs.30 crore

06

ICICI Prudential Smallcap Fund

11,57,406

7.58%

Rs.25 crore

07

ICICI Prudential Multicap Fund

11,57,406

7.58%

Rs.25 crore

08

Abakkus Emerging Opportunities

9,25,911

6.06%

Rs.20 crore

09

Birla Small Cap Fund

7,40,715

4.85%

Rs.16 crore

10

Birla Banking Fund

7,40,715

4.85%

Rs.16 crore

11

Theleme India Master Fund

4,16,902

2.73%

Rs.9 crore

12

BNP Paribas Arbitrage

3,24,024

2.12%

Rs.7 crore

Data Source: BSE Filings

With sedate signals coming from the GMP in the unofficial market, the anchor response has been 30% 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. CMS got predominant response from domestic funds plus some interest from global funds too.

Out of the total 152.78 lakh shares allotted to anchor investors, CMS Info Systems allotted a total of 61.11 lakh shares (40%) to domestic mutual funds.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in December 2021

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