InvestorQ : Did Electronic Mart India have a successful anchor placement and which institutions participated in the issue?
NISHA Nayak made post

Did Electronic Mart India have a successful anchor placement and which institutions participated in the issue?

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Priyanka N answered.
1 month ago
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The anchor issue of Electronic Mart India Ltd got a 30% subscription response on 03rd October 2022; a day ahead of the IPO opening. Let me focus on the anchor allotment portion ahead of the Electronic Mart India Ltd IPO. You must be aware that the anchor allocation has a lock-in period of just one month, but under the modified rules, part of the anchor portion will be locked in for 3 months. Unlike in a pre-IPO placement, the anchor investors cannot be allotted shares at discount to the IPO price. That is something that is explicitly barred by SEBI.

On 03rd October 2022, Electronic Mart got an enthusiastic response as anchor investors participated through book building. Electronic Mart India allotted a total of 2,54,23,728 shares (2.54 crore shares approximately) to 20 anchor investors at the upper IPO price band of Rs.59. The anchor portion saw 30% absorption. The total anchor size was Rs150 crore with domestic funds capturing a bulk of the anchor allocation. The table below captures the top 6 anchor investors in the Electronic Mart India IPO. Given below are the details of share of anchor allocation and the value of shares allocated.

Anchor Investor

No. of Shares

% of Anchor Portion

Value Allocated

Nippon India Flexicap Fund

30,50,794

12.00%

Rs.18.00 crore

HDFC Opportunities Fund

25,42,286

10.00%

Rs.15.00 crore

Pinebridge India Equity Fund

25,42,286

10.00%

Rs.15.00 crore

Ashoka India Equity Fund

16,94,942

6.67%

Rs.10.00 crore

Mirae Asset Great Consumer Fund

16,94,942

6.67%

Rs.10.00 crore

Motilal Oswal Mid Cap Fund

16,94,942

6.67%

Rs.10.00 crore

It must be kept in mind that the qualified institutional buyer (QIB) portion in the IPO will be reduced to the extent of the anchor placement. Only the balance amount will be available for QIB allocation as part of the regular IPO. Electronic Mart India Ltd saw a mix of response from FPIs, other investors and mutual funds although the domestic funds accounted for nearly 60% of the total anchor investment. Pinebridge Global, Ashoka India Equity, Abakkus, Cohesion MK Best Ideas Fund and Societe Generale (ODI) were some of the FPIs to be investing in the anchor portion.

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