InvestorQ : How has been the anchor placement response for the Ruchi Soya FPO?
Anjana Aiyar made post

How has been the anchor placement response for the Ruchi Soya FPO?

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Khushi Patel answered.
2 months ago
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A day ahead of the FPO opening, Ruchi Soya completed a successful anchor placement with key domestic and global investors. The anchor investments were reported late on 23-March. The anchor allocation has a lock-in period of just one month, although, under the modified rules, part of the anchor portion will be locked in for 3 months. The purpose of an anchor allotment is to give confidence to investors that the issue is backed by institutions.

In the anchor placement, Ruchi Soya saw a good response. A total of 1,98,43,153 shares were allotted to a total of 46 anchor investors domestic and global. The anchor allocation was made at the upper IPO price band of Rs.650 resulting in an overall anchor allocation of Rs.1,290 crore. This anchor portion was 30% of the overall issue size of Rs.4,300 crore. The FPO of Ruchi Soya will close for subscription on Monday 28-March.

Here are the top 5 anchors allotted shares in the FPO of Ruchi Soya in terms of overall allocation. The top 5 anchor investors accounted for 39% of total anchor placement.

Anchor Investor

No. of Shares

% of Anchor Portion

Value Allocated

YAS TAKAUL PJSC

20,61,402

10.40%

Rs.133.99 crore

SBI Life Insurance Co. Ltd

19,22,949

9.70%

Rs.124.99 crore

Authum Investments

12,69,114

6.40%

Rs.82.49 crore

Winro Commercial

12,69,114

6.40%

Rs.82.49 crore

AG Dynamics Fund

12,30,684

6.20%

Rs.79.99 crore


It needs to be noted that the QIB portion in the FPO of Ruchi Soya will be reduced to the extent of the anchor placement above. The only balance amount of the QIB quota will be available for QIB allocation since this anchor placement is carved out of the QIB quota. Key anchor investors not mentioned above included Alchemy, ASK India, Birla Mutual Fund, HDFC Life Insurance, Kotak Mutual Fund, Societe Generale, and UTI MF.

Both the global investors and the domestic investors played a significant part in the overall allocation. Out of the total 1.98 crore shares allotted by way of anchor placement, Ruchi Soya allotted 41.92 lakh shares to 24 domestic mutual fund schemes. This approximately represents 21.13% of the overall anchor allocation. That is a good response from all classes of institutional investors.

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