Medplus Health Services IPO - Anchor Bid Allocation
The anchor issue of Medplus Health Services Ltd saw a robust response on 10-December and the announcement was made late on Friday. The Medplus IPO opens on 13-December in the price band of Rs.780 to Rs.796 and shall remain open for 3 working days up to 15-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 Medplus Health Services Ltd
On 10-December, Medplus Health Services Ltd completed the bidding for its anchor allocation. There was a tremendous response. A total of 52,51,111 shares were allotted to 36 anchor investors at the upper IPO price band of Rs.796 valued at Rs.417.99 crore, or 29.89% of the issue size.
Listed below are the 14 anchor investors who have been allotted more than 3.5% of the anchor allocation each in the IPO. Out of the total anchor allocation of Rs.417.99 crore, these 16 major anchor investor accounted for 69.98% of the overall anchor allocation.
|
Anchor Investor |
No. of Shares |
% of Anchor Portion |
Value Allocated |
|
Abu Dhabi Investment Authority |
3,46,086 |
6.59% |
Rs.27.55 crore |
|
Blackrock Global Funds |
3,46,086 |
6.59% |
Rs.27.55 crore |
|
Fidelity Investments |
3,46,086 |
6.59% |
Rs.27.55 crore |
|
Nomura Funds International |
3,46,086 |
6.59% |
Rs.27.55 crore |
|
Goldman Sachs India Equity |
2,75,634 |
5.25% |
Rs.21.94 crore |
|
Morgan Stanley Investment Fund |
2,75,634 |
5.25% |
Rs.21.94 crore |
|
HDFC Capital Builder Fund |
3,01,518 |
5.74% |
Rs.24.00 crore |
|
Birla Sun Life Small Cap Fund |
2,00,502 |
3.82% |
Rs.15.96 crore |
|
Nippon India Focused Equity Fund |
2,76,390 |
5.26% |
Rs.22.00 crore |
|
DSP Healthcare Fund |
1,92,078 |
3.66% |
Rs.15.29 crore |
|
Ashok India Equity Fund |
1,92,078 |
3.66% |
Rs.15.29 crore |
|
HDFC Life Insurance |
1,92,078 |
3.66% |
Rs.15.29 crore |
|
ICICI Prudential Life Insurance |
1,92,078 |
3.66% |
Rs.15.29 crore |
|
SBI Life Insurance |
1,92,078 |
3.66% |
Rs.15.29 crore |
Data Source: BSE Filings
With strong signals coming from the GMP at about 38% premiums in the unofficial market, the anchor response has been 29.89% 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. Medplus Health has been a mix, getting good response from FPIs, and domestic mutual funds and insurances.
Major global investors included Goldman Sachs, Abu Dhabi Investment Authority, Nomura, Morgan Stanley, Ashoka Fund, Blackrock, Carmignac and CI Asia Tiger Fund. Domestic funds and insurances in the anchor list included SBI Life, HDFC Life, ICICI Prudential Life, HDFC MF, Kotak MF, Aditya Birla MF, DSP MF, SBI MF, Nippon India MF, Motilal MF etc.
Out of the total 52.51 lakh shares allotted to anchor investors, Medplus Health allotted a total of 17.96 lakh shares (34.21%) to domestic mutual funds.
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