eMudhra IPO: Anchor Placement details

emudhra ipo anchor placement details

IPO
by 5paisa Research Team Last Updated: 2022-05-20T13:10:36+05:30

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.

Also Read:-

Upcoming IPOs in May 2022

List of Upcoming IPOs in 2022

 

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About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Disclaimer

Investment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.

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