Campus Activewear IPO - Anchor Placement Details

5paisa Research Team 5paisa Research Team 11th December 2022 - 09:20 am

The anchor issue of Campus Activewear Ltd saw a robust response on 25th April 2022 and the announcement was made late on Monday.

The Campus Activewear IPO opens on 26th April 2022 in the price band of Rs.278 to Rs.292 and shall remain open for 3 working days and close on 28th April 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/FPO 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 investors cannot be allotted shares at a discount.

Anchor placement story of Campus Activewear Ltd

On 25th April 2022, Campus Activewear Ltd 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 1,43,25,000 shares were allotted to a total of 32 anchor investors.

The allocation was done at the upper IPO price band of Rs.292 which resulted in an overall allocation of Rs.418.29 crore.

Listed below are the 10 anchor investors who have been allotted more than 3.50% of the anchor allocation each in the IPO. Out of the total anchor allocation of Rs.418.29 crore, these 10 major anchor investors accounted for 53.03% of the overall anchor allocation.

Anchor Investor	No. of Shares	% of Anchor Portion	Value Allocated
Abu Dhabi Investment Authority	917,898	6.41%	Rs.26.80 crore
Fidelity India Focus Fund	917,898	6.41%	Rs.26.80 crore
Nomura India Mother Fund	917,898	6.41%	Rs.26.80 crore
East Spring Investments	917,898	6.41%	Rs.26.80 crore
Ashoka India Equity Fund	917,898	6.41%	Rs.26.80 crore
HDFC Balanced Advantage Fund	917,898	6.41%	Rs.26.80 crore
HDFC Life Insurance	526,014	3.67%	Rs.15.36 crore
ICICI Prudential Life Insurance	526,014	3.67%	Rs.15.36 crore
CLSA Global Markets Pte Ltd	526,014	3.67%	Rs.15.36 crore
Nippon India Flexi Cap Fund	510,000	3.56%	Rs.14.89 crore

_{Data Source: BSE Filings}

With stable signals coming from the GMP with premiums of about 20%, the anchor response has been 29.87% of the total issue size. 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.

Check - Campus Activewear IPO - Grey Market Premium

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. Campus Activewear Ltd has been a mix, getting good response from FPIs and domestic mutual funds.

Apart from the above list, some of the major Foreign Investors that put money in the anchor issue include, HSBC Global Investments, Mandarin Investment Partners, GMO Emerging Markets, NVIT Emerging Markets Fund, Affin Hwang Flexi Fund, Societe Generale and Goldman Sachs Singapore.

Among the key domestic investors that invested in the anchor placement, apart from the list mentioned in the table were, ICICI Prudential AMC, DSP Mutual Fund, Franklin Templeton Mutual Fund, Aditya Birla Sun Life Mutual Fund, Invesco Mutual Fund and Motilal Oswal Mutual Fund.

Out of the total 143.25 lakh shares allotted by way of anchor placement, Campus Activewear Ltd allotted a total of 56.12 lakh shares to 15 domestic mutual fund schemes across 8 AMCs. The mutual fund allocation represents 39.18% of the overall anchor allocation.

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