InvestorQ : Can you tell me about the anchor investor response for the AGS Transact IPO that opened on 19th January?
Dawn Cherian made post

Can you tell me about the anchor investor response for the AGS Transact IPO that opened on 19th January?

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Mitali Bhutta answered.
4 months ago
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On 18 January, a day before the IPO of AGS Transact Technologies opened, the anchor book of the IPO saw a robust response. The IPO closes for subscription on 21-January 2022. Just a word on the anchor process. 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. Basically, anchors give confidence to investors that the issue is backed by large institutions.

On 18-January 2022, AGS Transact Technologies completed the anchor allocation with good response. A total of 1,16,57,141 (116.57 lakh) shares were allotted to 17 anchor investors at the upper IPO price band of Rs.175 which resulted in an overall allocation of Rs.204 crore. The price band of the IPO is in the range of Rs.165 to Rs.175. Here is a list of the 10 anchor investors allotted more than 4% of the overall anchor allocation.

Anchor Investor

No. of Shares

% of Anchor Portion

Value Allocated

HDFC Balanced Advantage Fund

14,28,595

12.26%

Rs.25.00 crore

Nippon India Small Cap Fund

14,28,595

12.26%

Rs.25.00 crore

BNP Paribas Arbitrage ODI

14,28,595

12.26%

Rs.25.00 crore

Ashoka India Equity Fund

14,28,595

12.26%

Rs.25.00 crore

Kuber India Fund

8,57,140

7.35%

Rs.15.00 crore

Saint India Fund

8,57,140

7.35%

Rs.15.00 crore

IIFL Special Opportunities Fund

7,71,375

6.62%

Rs.13.50 crore

Abakkus Growth Fund

6,85,695

5.88%

Rs.12.00 crore

Quant Value Fund

6,51,865

5.59%

Rs.11.41 crore

Tara Emerging Asia Fund

5,71,450

4.90%

Rs.10.00 crore

Data Source: BSE Filings

Anchor size has been 30% of the total issue size and the QIB portion will be reduced to the extent of the anchor placement done above in the actual IPO allocation. AGS Transact got good response from FPIs and domestic funds. Apart from the above list other investors in the anchor issue included Cohesion MK, Authum Investments, Quant Mutual Fund and Resonance Opportunities Fund. Domestic funds got 33.34% of allocation across schemes.

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