Metro Brands IPO - Anchor Placement Details
The anchor issue of Metro Brands Ltd saw a robust response on 09-December and the announcement was made late on Thursday. The IPO opens on 10-December in the price band of Rs.485 to Rs.500 and shall remain open for 3 working days up to 14-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 Metro Brands Ltd
On 09-December, Metro Brands completed the bidding for its anchor allocation. There was a tremendous response. A total of 82,05,030 shares were allotted to 28 anchor investors. at the upper IPO price band of Rs.500 valued at Rs.410.25 crore, or 30% of the issue size.
Listed below are the 16 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.410.25 crore, these 16 major anchor investor accounted for 78.18% of the overall anchor allocation.
|
Anchor Investor |
No. of Shares |
% of Anchor Portion |
Value Allocated |
|
Goldman Sachs India Equity |
5,40,000 |
6.58% |
Rs.27.00 crore |
|
Abu Dhabi Investment Authority |
5,40,000 |
6.58% |
Rs.27.00 crore |
|
ICICI Pru ESG Fund |
5,40,000 |
6.58% |
Rs.27.00 crore |
|
Kotak Emerging Equity Scheme |
5,40,000 |
6.58% |
Rs.27.00 crore |
|
SBI Life Insurance |
4,00,020 |
4.88% |
Rs.20.00 crore |
|
HDFC Life Insurance |
4,00,020 |
4.88% |
Rs.20.00 crore |
|
University of Notre Dame |
4,00,020 |
4.88% |
Rs.20.00 crore |
|
Kotak Mid Cap Fund |
4,00,020 |
4.88% |
Rs.20.00 crore |
|
Indus India Fund |
4,00,020 |
4.88% |
Rs.20.00 crore |
|
HDFC Capital Builder Fund |
3,33,360 |
4.06% |
Rs.16.67 crore |
|
Aditya Birla Gennext Fund |
3,20,010 |
3.90% |
Rs.16.00 crore |
|
GMO Emerging Markets |
3,20,010 |
3.90% |
Rs.16.00 crore |
|
Pinebridge India Equity Fund |
3,20,010 |
3.90% |
Rs.16.00 crore |
|
Goldman Sachs Singapore |
3,20,010 |
3.90% |
Rs.16.00 crore |
|
Valiant India Opportunities Fund |
3,20,010 |
3.90% |
Rs.16.00 crore |
|
Janchor Partners |
3,20,010 |
3.90% |
Rs.16.00 crore |
Data Source: BSE Filings
With strong signals coming from the GMP and with reasonable premiums in the unofficial market, the anchor response has been 30% of the total issue size. The QIB portion in the Metro Brands 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. Metro Brands 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, University of Notre Dame, Indus Fund, GMO Emerging Markets, Valiant India, Janchor Partners etc. Domestic funds and insurances in the anchor list included SBI Life, HDFC Life, ICICI Pru MF, Kotak MF, UTI MF, Tata MF, Sundaram MF etc.
Out of the total 82.05 lakh shares allotted to anchor investors, Metro allotted a total of 27.40 lakh shares (33.39%) to domestic mutual funds.
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