Tanushree JaiswalVodafone Idea FPO Allotment St...
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Tanushree Jaiswal
24/04/2024
IPO
5paisa Research Team
9th December 2022
Star Health & Allied Insurance IPO - Anchor Placement details
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.
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