InvestorQ : Can you tell me about the anchor portion allotment done for the Syrma SGS Technology IPO?
manisha Kolvenkar made post

Can you tell me about the anchor portion allotment done for the Syrma SGS Technology IPO?

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Crowny Pinto answered.
1 month ago
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The anchor issue of Syrma SGS Technology got good response on 11th August 2022, a day ahead of the IPO opening on 12th August 2022. The IPO was set in the price band of Rs.209 to Rs.220 and the subscription will close on 18th August 2022. The anchor allotment normally has a lock-in period of one month, although under new rules a portion is locked in for 3 months. These anchors cannot be allotted shares at a discount to the IPO price. In the current anchor to QIBs and MF, the allotment was done at the upper end of the price band.

Syrma SGS Technology completed the bidding for anchor allocation through the process of book building. It allotted a total of 1,14,56,261 shares to 18 anchor investors at the upper IPO band of Rs.220. The total anchor placement was worth Rs252.04 crore. A total 18 anchors got the allotment in the anchor placement of which the top 12 anchors accounted for 85.74% of the total allocation to anchors. Given below is the list of the top 6 anchor invested who were allotted more than 6% of the total anchor allocation.

Anchor Investor

No. of Shares

% of Anchor Portion

Value Allocated

Nomura Stock Mother Fund

13,63,672

11.90%

Rs.30.00 crore

ICICI Prudential ESG Fund

13,63,672

11.90%

Rs.30.00 crore

Volrado Venture Partners

13,63,672

11.90%

Rs.30.00 crore

ICICI Prudential Flexi Cap Fund

10,48,968

9.16%

Rs.23.08 crore

Franklin Smaller Companies Fund

727,328

6.35%

Rs.16.00 crore

Tata India Tax Saving Fund

727,328

6.35%

Rs.16.00 crore

The overall anchor response was about 30% of the total issue size, which his considered to be a healthy level. The QIB portion in the IPO allocation will be reduced to the extent of the anchor placement done here and only the balance amount will be for QIB allocation. Out of the total anchor allocation of 114.56 lakh shares, Syrma SGS Technology has allotted a total of 38.19 lakh shares to 7 domestic mutual fund schemes spread across 5 AMCs. The mutual fund allocation represents 33.33% of the overall anchor allocation and is in tune.

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