How was the anchor placement response ahead of the Rainbow Hospital IPO?
Answer
Answer
On 26th April, the anchor bidding of Rainbow Children’s Medicare Ltd was successfully completed with a strong response in the book building process. A total of 86,63,404 shares were allocated across a total of 36 anchor investors. The anchor allocation was done at the upper price band of the IPO of Rs.542 which resulted in overall allocation of Rs.469.56 crore.
The major anchor investors who were allotted more than 4.00% each in the anchor portion included marquee names like SBI Mutual Fund, Amansa Holdings, Neuberger Berman, Government of Singapore, Ashoka India Opportunities Fund, Nippon Mutual Fund, HDFC Life Insurance, Aditya Birla AMC, DSP Mutual Fund and Baroda BNP Mutual Fund
The grey market price has been stable at around 10% of the likely IPO price and that has led to nearly 29.70% of the total issue size being allocated to anchors. The QIB portion in the IPO will be reduced to the extent of the anchor placement done above. Only the balance amount will be available for QIB allocation as part of the regular IPO opening on Apr 27th.
Rainbow got a good mix of FPIs and domestic mutual funds. Apart from the above list of top investors, other FPI anchors included India Acorn ICAV, Matthews Fund and Goldman Sachs. Other domestic investors included Axis MF, IIFL Special Opportunities Fund, Max Life Insurance, Aditya Birla AMC, Motilal Oswal MF, Bajaj Allianz Life Insurance and HSBC MF.
Nearly 45% of the anchor portion went to the domestic mutual funds and the balance 55% to other anchor investors. Out of the 86.63 lakh shares allotted to anchors, Rainbow Children’s Medicare allotted 38.97 lakh shares to 18 domestic mutual fund schemes across 9 AMCs. The mutual fund allocation represents 44.99% of the overall anchor allocation.