InvestorQ : How was the response to the anchor placement by Rategain Travel Technologies ahead of its IPO opening on 07-December?
swati Bakhda made post

How was the response to the anchor placement by Rategain Travel Technologies ahead of its IPO opening on 07-December?

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Sam Eswaran answered.
5 months ago
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There was good response from the qualified institutional buyers to the anchor issue of Rategain Travel Technologies on 06-December. As per the announcement made by the company to the BSE late on Monday, a total of 1,40,90,136 shares were allotted across 34 global and domestic anchor investors. The allocation was made by Rategain at the upper IPO price band of Rs.425, so the amount of anchor allocation stood at Rs.598.83 crore.

There were a total of 9 anchor investors who got allotted more than 4% of the anchor allocation. We have considered scheme wise and not entity wise. Out of the total anchor allocation of Rs.598.83 crore, the 9 key anchor investor accounted for 68%. These key anchor investors included names like Government of Singapore, Nomura India Fund, Ashoka, Nippon Flexi Cap Fund, Goldman Sachs, Pinebridge Asia, ICICI Pru Life and SBI Life.

The anchor placement is done ahead of the IPO but the price of allotment is the same as the IPO discovered price. However, unlike a pre-IPO placement, anchor investors have a much lower lock-in period of just 1 month, after which they can sell. The anchor response in the case of Rategain has been 44.83% of the total issue size. The QIB portion in the IPO will be reduced to the extent of anchor placement and only the remaining will be part of IPO.

In a way, one can say that the Rategain anchor placement was somewhat unique in that it attracted interested from FPIs and domestic funds. Normally, in anchor placements, smaller issues don’t elicit FPI interest while larger issues do not attract mutual funds. Rategain has got a good response from FPIs, sovereign funds, domestic mutual funds and insurances. In fact, Rategain allotted a total of 42.35 lakh shares to domestic mutual funds, or 30%.

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