AGS Transact Technologies IPO - Anchor Placement Details

5paisa Research Team 5paisa Research Team 9th December 2022 - 02:05 am

The anchor issue of AGS Transact Technologies Ltd saw a robust response on 18-January 2022 and the announcement was made late on Tuesday. The IPO opened on 19-January 2022 in the price band of Rs.165 to Rs.175 and shall remain open for 3 days and close on 21-January 2022. Let us focus on the anchor allotment portion ahead of the IPO.

Before we go into the details of the actual anchor allotment, a quick word on the process of anchor placement. The anchor placement ahead of an IPO is different from a pre-IPO placement in that the anchor allocation has a lock-in period of just one month, although under the new rules, part of the anchor portion will be locked in for 3 months. It is just to give confidence to investors that the issue is backed by large established institutions. However, the anchor investor cannot be allotted shares at a discount.

Anchor placement story of AGS Transact Technologies Ltd

On 18-January 20-22, AGS Transact Technologies completed the bidding for its anchor allocation. There was a tremendous response as the anchor investors participated through the process of book building. A total of 1,16,57,141 shares were allotted to a total of 17 anchor investors. The allocation was done at the upper IPO price band of Rs.175 which resulted in an overall allocation of Rs.204 crore.

Listed below are the 10 anchor investors who have been allotted more than 4% of the anchor allocation each in the IPO. Out of the total anchor allocation of Rs.204 crore, these 10 major anchor investor accounted for 86.7% of the overall anchor allocation.

Anchor Investor	No. of Shares	% of Anchor Portion	Value Allocated
HDFC Balanced Advantage Fund	14,28,595	12.26%	Rs.25.00 crore
Nippon India Small Cap Fund	14,28,595	12.26%	Rs.25.00 crore
BNP Paribas Arbitrage ODI	14,28,595	12.26%	Rs.25.00 crore
Ashoka India Equity Fund	14,28,595	12.26%	Rs.25.00 crore
Kuber India Fund	8,57,140	7.35%	Rs.15.00 crore
Saint India Fund	8,57,140	7.35%	Rs.15.00 crore
IIFL Special Opportunities Fund	7,71,375	6.62%	Rs.13.50 crore
Abakkus Growth Fund	6,85,695	5.88%	Rs.12.00 crore
Quant Value Fund	6,51,865	5.59%	Rs.11.41 crore
Tara Emerging Asia Fund	5,71,450	4.90%	Rs.10.00 crore

_{Data Source: BSE Filings}

With stable signals coming from the GMP with premiums of just about 5-7%, the anchor response has been 30% of the total issue size. The QIB portion in the AGS Transact Technologies 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.

The general norm is that, in anchor placements, smaller issues find it hard to get FPIs interested while larger issues do not interest mutual funds. AGS Transact Technologies has been a mix, getting good response from FPIs, and domestic mutual funds. Among other investors not mentioned in the above list included Cohesion MK, Authum Investments and Resonance Opportunities Fund.

Out of the total 116.57 lakh shares allotted by way of anchor placement, AGS Transact Technologies allotted a total of 38.86 lakh shares to domestic mutual funds, representing 33.34% of the overall anchor allocation.

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