Ruchi Soya FPO - Anchor Placement Details

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IPO
by 5paisa Research Team Last Updated: 2022-03-24T13:08:33+05:30

The anchor issue of Ruchi Soya Ltd saw a robust response on 23rd March 2022 and the announcement was made late on Wednesday. The FPO opens on 24th March 2022 in the price band of Rs.615 to Rs.650 and shall remain open for 3 working days and close on 28th March 2022. Let us focus on the anchor allotment portion ahead of the Ruchi Soya FPO.

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 investor cannot be allotted shares at a discount.
 

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Anchor placement story of Ruchi Soya Ltd


On 23-March 2022, Ruchi Soya completed the bidding for its anchor allocation. There was a tremendous response as the anchor investors participated through the process of book building.

A total of 1,98,43,153 shares were allotted to a total of 46 anchor investors. The allocation was done at the upper IPO price band of Rs.650 which resulted in an overall allocation of Rs.1,289.81 crore.

Listed below are the 10 anchor investors who have been allotted more than 2.50%  of the anchor allocation each in the IPO. Out of the total anchor allocation of Rs.1,289.81 crore, these 10 major anchor investors accounted for 57.63% of the overall anchor allocation.
 

Anchor Investor

No. of Shares

% of Anchor Portion

Value Allocated

YAS TAKAUL PJSC

20,61,402

10.40%

Rs.133.99 crore

SBI Life Insurance Co. Ltd

19,22,949

9.70%

Rs.124.99 crore

Authum Investments

12,69,114

6.40%

Rs.82.49 crore

Winro Commercial

12,69,114

6.40%

Rs.82.49 crore

AG Dynamics Fund

12,30,684

6.20%

Rs.79.99 crore

Volrado Venture Partners

11,53,740

5.80%

Rs.74.99 crore

Quant Active Fund

8,31,600

4.20%

Rs.54.05 crore

Quant Tax Plan

7,00,623

3.50%

Rs.45.54 crore

Belgrave Investments

5,38,356

2.70%

Rs.34.99 crore

Cohesion MK Best Ideas

5,38,356

2.70%

Rs.34.99 crore

 

Data Source: BSE Filings

With stable signals coming from the GMP with premiums of about 5%, 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. Ruchi Soya has been a mix, getting good response from FPIs and domestic mutual funds.

Among other investors not mentioned in the above list included Alchemy, ASK India, Birla Mutual Fund, HDFC Life Insurance, Kotak Mutual Fund, Societe Generale, Oman Sovereign Fund and UTI MF.

Out of the total 198.43 lakh shares allotted by way of anchor placement, Ruchi Soya allotted a total of 41.92 lakh shares to 24 domestic mutual fund schemes, representing 21.13% of the overall anchor allocation.

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