Star Health & Allied Insurance IPO - Anchor Placement details

Star Health & Allied Insurance - Anchor Placement details

IPO
by 5paisa Research Team Last Updated: 2021-11-30T22:03:19+05:30

The anchor issue of Star Health & Allied Insurance saw a robust response on 29-November and the announcement was made late on Monday. The Star Health & Allied Insurance IPO opens on 30-November in the price band of Rs.870-900 and shall remain open for 3 days up to 02-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 Star Health & Allied Insurance


On 29-November, Star Health 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 3,57,45,901 shares were allotted to a total of 62 anchor investors. The allocation was done at the upper IPO price band of Rs.900 which resulted in an overall allocation of Rs.3,217.13 crore.

Listed below are the 11 anchor investors who have been allotted more than 2.5%  of the anchor allocation each in the IPO.

Out of the total anchor allocation of Rs.3,217.13 crore, these 11 major anchor investor accounted for 60% of the overall anchor allocation.
 

Anchor Investor

No. of Shares

% of Anchor Portion

Value Allocated

BNP Paribas - ODI

31,00,816

8.67%

Rs.279.07 crore

Ballie Gifford Pacific Fund

27,76,208

7.77%

Rs.249.86 crore

WF Asian Smaller Companies Fund

27,30,992

7.64%

Rs.245.79 crore

The New Economy Fund

24,82,928

6.95%

Rs.223.46 crore

Monetary Authority of Singapore

24,64,336

6.89%

Rs.221.79 crore

Janchor Partners Fund

19,01,840

5.32%

Rs.171.17 crore

WCM Focused EM Fund

13,85,424

3.88%

Rs.124.69 crore

Universities Superannuation

12,40,320

3.47%

Rs.111.63 crore

Valiant Mauritius Fund

11,58,704

3.24%

Rs.104.28 crore

Goldman Sachs - ODI

10,98,672

3.07%

Rs.98.88 crore

Ashoka India Opportunities Fund

10,46,016

2.93%

Rs.94.14 crore

 

Data Source: BSE

Despite the weak signals coming from the GMP, the anchor response has been 44% 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 flow.

Check - Grey Market Premium of Star Health

One interesting inference one can draw is that, like in the Paytm issue, the domestic mutual funds have been largely inactive barring a couple of mutual funds like Mirae AMC and Edelweiss AMC.

Among other domestic anchor investors were IIFL Opportunities Fund and a host of insurance companies including HDFC Life, Max Life Insurance and Bharti AXA Life.

It may be noted that among the major investors, two are suffixed as ODI. These refer to offshore derivative instruments.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in December 2021

Star Health and Allied Insurance IPO - 7 Things to Know

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