InvestorQ : Can you tell me who were the major participants in the Harsha Engineers IPO anchor placement?
Khushi Patel made post

Can you tell me who were the major participants in the Harsha Engineers IPO anchor placement?

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Dhwani Mehta answered.
3 weeks ago
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Like all anchor issues, the anchor placement of Harsha Engineers International was done a day ahead IPO opening on 13th September 2022. The response was strong with 29.9% of the IPO size getting absorbed by anchors. The total anchor allocation was done at the upper price band of Rs330. Here is what the anchor placement is all about. Currently, the anchor placement has a lock-in period of one month for 50% of the allocation and 3 months lock-in for the balance 50% allocation. Anchors are institutions that give confidence to investors.

As per extant SEBI regulations, anchor investors cannot be allotted shares at discount to the IPO price. If offer Price discovered through book building process is higher than the Anchor Investor Allocation Price, then Anchor investors must pay the difference by the pay-in date as agreed upon. Anchor portion is part of the public issue, so the IPO portion to the public (QIB portion) is reduced to that extent. Anchor investors also largely aid in price discovery of the IPO since their price applicable becomes the starting point.

Here are the details of the anchors who participated, but first the overall details. On 13th September, Harsha Engineers completed anchor allocation and met with an enthusiastic response. A total of 68,40,855 shares or 68.40 lakh shares were allotted to a total of 23 anchor investors. The anchor allocation was done at the upper IPO price band of Rs.330 per share worth Rs.225.75 crore. Anchors absorbed 29.9% of the total issue size, which is indicative of the robust institutional demand and will be deducted from QIB quota.

The table below captures the top 8 anchor investors in the IPO of Harsha Engineers.

Anchor Investor

No. of Shares

% of Anchor Portion

Value Allocated

American Funds Insurance

669,570

14.17%

Rs.32.00 crore

Goldman Sachs India Equity

535,590

7.83%

Rs.17.67 crore

HDFC Small Cap Fund

535,590

7.83%

Rs.17.67 crore

Abu Dhabi Investment Authority

535,590

7.83%

Rs.17.67 crore

Nippon India Small Cap Fund

505,260

7.39%

Rs.16.67 crore

SBI Multi Asset Allocation Fund

421,965

6.17%

Rs.13.92 crore

Whiteoak Capital Flexicap Fund

356,625

5.21%

Rs.11.77 crore

Pinebridge India Equity Fund

303,165

4.43%

Rs.10.00 crore

Harsha Engineers International Ltd has seen a good response from FPIs and domestic mutual funds, although domestic funds have tended to dominate even as insurance companies also participated. With strong SIP flows, equity funds are flush with cash at this point of time. Out of 68.41 lakh shares allotted by way of anchor placement, Harsha Engineers allotted 38.91 lakh shares to 17 domestic mutual fund schemes across 9 AMCs. Mutual fund allocation represents 56.87% of the overall anchor allocation.

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