InvestorQ : How was the anchor response for the IPO of CMS Info Systems, which opened on 21-Dec?
Moii Chavate made post

How was the anchor response for the IPO of CMS Info Systems, which opened on 21-Dec?

Tisha Malhotra answered.
5 months ago

A day ahead of the issue opening, CMS Info Systems completed an anchor placement of shares on 20-December. Currently, the IPO is open and closed for subscription on 23-December. You must be aware that the anchor placement is different from a pre-IPO placement since the lock-in for anchor allocation is just 1 month. However, anchor investor cannot be allotted shares at a discount. The anchor gives confidence to retail investors.

On 20-December, a day ahead of the IPO opening, CMS Info Systems Ltd did an anchor allocation of 152.78 lakh shares to a total of 12 anchor investors. This anchor allotment was done at the upper IPO price band of Rs.216. This takes the total anchor allocation size to Rs.330 crore, representing 30% of the overall IPO size of Rs.1,100 crore. The entire anchor allotment was distributed across just 12 investors only.

Here are the major anchor investors who took more than 5% of the anchor size individually. Nomura India (Rs.50 crore), SBI Small Cap Fund (Rs.50 crore), WF Asia Reconnaissance Fund (Rs.50 crore), Goldman Sachs India (Rs.32 crore), SBI Life Insurance (Rs.30 crore), ICICI Prudential Smallcap Fund (Rs.25 crore), ICICI Prudential Multicap Fund (Rs.25 crore), Abakkus Emerging Opportunities Fund (Rs.20 crore).

It must be noted that the overall QIB portion in the IPO will be reduced to the extent of the anchor placement of 152.78 lakh shares done above. Only the balance amount will be available for QIB allocation as part of the regular IPO. While some FPI interest was visible, the anchor book was largely dominated by the domestic funds. CMS Info Systems allotted a total of 61.11 lakh shares (40% of the anchor quota) to domestic mutual funds.