CMS Info Systems Ltd IPO - Anchor Placement Details
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.
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