Can you tell me about the anchor placement ahead of the IPO of Campus Activewear?

Late on 25th April 2022, Monday, the allocation to the anchor investors was complete for Campus Activewear Ltd. The response was encouraging as anchor investors participated via book building. A total of 1,43,25,000 (143.25 lakh) shares were allocated to a total of 32 anchor investors. The entire anchor allocation was made at the upper IPO price band of Rs.292 (band 278-292) which resulted in overall anchor allocation of Rs.418.29 crore.

Some of the major anchor allottees included marquee names like Abu Dhabi Investment Authority, Fidelity India Focus Fund, Nomura India Mother Fund, East Spring Investments, Ashoka India Equity Fund, CLSA Global Markets, ICICI Prudential Life Insurance, HDFC Life Insurance and a host of other domestic Indian mutual funds. The top 10 major anchor investors (above 3.5% ) accounted for 53.03% of the overall anchor allocation.

The anchor response was around 29.87% of the total issue size. For the actual IPO, the QIB portion of the IPO will be reduced to the extent of the anchor placement done. Only the residual shares will be available for QIB allocation in the regular IPO. Some of the other FPIs who got anchor allotment include HSBC Global Investments, GMO Emerging Markets, NVIT Emerging Markets, Affin Hwang Flexi Fund, Societe Generale and Goldman Sachs Singapore.

Domestic funds that were key also anchors included ICICI Prudential MF, DSP Mutual Fund, Franklin Templeton AMC, Aditya Birla Sun Life AMC, Invesco Mutual Fund and Motilal Oswal MF. Out of the 143.25 lakh shares allotted to the anchors, Campus Activewear allotted 56.12 lakh shares to a total of 15 domestic mutual fund schemes across 8 AMCs. Mutual fund allocation represented a sizable 39.18% of overall anchor allocation.