Veranda Learning Solutions IPO - Anchor placement details

The anchor issue of Veranda Learning Solutions saw a robust response on 28th March 2022 and the announcement was made late on Monday. The IPO opens on 29th March 2022 in the price band of Rs.130 to Rs.137 and shall remain open for 3 working days and close on 31st March 2022. 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 Veranda Learning Solutions IPO 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.

Anchor placement story of Veranda Learning Solutions

On 28-March 2022, Veranda Learning Solutions completed the bidding for its anchor allocation. There was a good response as the anchor investors participated through the process of book building. A total of 34,12,500 shares were allotted to a total of 3 anchor investors.

The allocation was done at the upper IPO price band of Rs.137 which resulted in an overall allocation of Rs.46.75 crore.

Listed below are the 3 anchor investors who have been allotted shares in the anchor allocation in the IPO. The total anchor allocation of Rs.46.75 crore was spread across the 3 anchor investors below that participated in the anchor placement.
 

Anchor Investor	No. of Shares	% of Anchor Portion	Value Allocated	% of Overall Issue Size
AG Dynamic Funds Ltd	18,24,900	53.48%	Rs.25.00 crore	12.50%
Resonance Opportunities Fund	7,30,000	21.39%	Rs.10.00 crore	5.00%
Next Ventures Orbit Fund	8,57,600	25.13%	Rs.11.75 crore	5.87%
Total Anchor Allocation	34,12,500	100.00%	Rs.46.75 crore	23.38%

_{Data Source: BSE Filings}
 

Here are some key takeaways from the anchor numbers.

1)The entire anchor allocation of Rs.46.75 crore was spread across just 3 investor as above. All are global investment funds.

2) The 3 anchors were allotted 34.125 lakh shares in total amounting to Rs.46.75 crore at the upper price band of Rs.137 per share.

3) The total anchor allocation amounted to 23.38% of the total issue size and equivalent number of shares will be reduced from the QIB public issue quota.

4) There were no domestic mutual funds that participated in the anchor allocation of Veranda Learning Solutions.

The anchor response has been 23.38% of the total issue size. After deducting these shares from the QIB portion, the balance number of shares will be available for QIB allocation as part of the regular IPO.

Out of the total 34,12,500 lakh shares allotted by way of anchor placement, there were no shares that were allocated to the domestic mutual funds. The anchor allocation was done by Veranda Learning Solutions in consultation with the BRLM, Systematix Corporate Services Ltd.

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