InvestorQ : Can you tell me about the anchor placement of the eMudhra IPO that opened last week?
prachi Patwardhan made post

Can you tell me about the anchor placement of the eMudhra IPO that opened last week?

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sara Kunju answered.
2 months ago
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A day ahead of the IPO opening, EMudhra completed bidding for its anchor allocation on 19th May 2022. A total of 48,37,336 (48.37 lakh approximately) shares were allotted across a total of 9 anchor investors and this included 5 registered mutual funds schemes. There was also some FPI interest in the anchor placement. The allocation to anchors was at the upper IPO price band of Rs.256, so the overall anchor allocation was at Rs.123.84 crore.

Here is the list of 9 anchors that comprised 100% of the total anchor placement of Rs123.84 crore. The anchor placement was done through a process of book building.

Anchor Investor

No. of Shares

Value Allocated

Hornbill Orchid India Fund

1,144,224

Rs.29.29 crore

Baring Private Equity Fund

604,708

Rs.15.48 crore

Abakkus Growth Fund (2)

539,516

Rs.13.81 crore

Pinebridge India Equity Fund

539,516

Rs.13.81 crore

SBI Technology Opportunities Fund

539,516

Rs.13.81 crore

Nippon India Small Cap Fund

539,516

Rs.13.81 crore

Motilal Oswal Dynamic Fund

390,824

Rs.10.01 crore

Aditya Birla SL Digital India Fund

269,758

Rs.6.91 crore

Aditya Birla SL Small Cap Fund

269,758

Rs.6.91 crore

Total Anchor Allocation

48,37,336

Rs.123.84 crore

  

The strong response to the anchor portion is a good signal as it indicates robust institutional demand from FPIs and mutual funds ahead of the IPO. The QIB portion in the IPO will be reduced to the extent of anchor placement done above and the balance will be available for QIB allocation as part of the regular IPO. In addition, the employee quota will be also deducted from the overall IPO allocation.

Anchor placements are normally done a day ahead of the actual IPO and is a good source of comfort for the small investors. EMudhra, due to its unique positioning as a popular retail digital brand and profitable operations, elicited interest from FPIs and mutual funds. The entire allocation was split across the 9 anchors above. Out of the anchor allocation of 48.37 lakh shares a total of 20.09 lakh shares, representing 41.54% of the anchor portion was allocated to 5 mutual fund schemes across 4 AMCs.

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