Medplus Health Services IPO - Anchor Bid Allocation

Medplus Health Services IPO - Anchor Bid Allocation

IPO
by 5paisa Research Team Last Updated: Dec 11, 2021, 12:43 PM IST

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.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in December 2021

Disclaimer

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