C.E. Info Systems (MapmyIndia) IPO - Anchor Placement Details

5paisa Research Team 5paisa Research Team 9th December 2022 - 08:34 am

The anchor issue of C.E. Info Systems (MapmyIndia) Ltd saw a robust response on 08-December and the announcement was made late on Wednesday. The IPO opens on 09-December in the price band of Rs.1,000 to Rs.1,033 and shall remain open for 3 working days up to 13-December. 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. 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 C.E. Info Systems (MapmyIndia) Ltd

On 08-December, C.E. Info Systems (MapmyIndia) 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 30,19,183 shares were allotted to a total of 34 anchor investors. The allocation was done at the upper IPO price band of Rs.1,033 which resulted in an overall allocation of Rs.311.88 crore, or nearly 30% of the issue size.

Check - MapmyIndia IPO - Grey Market Premium

Listed below are the 13 anchor investors who have been allotted more than 3.5% of the anchor allocation each in the IPO. Out of the total anchor allocation of Rs.311.88 crore, these 13 major anchor investor accounted for 67.83% of the overall anchor allocation.

Anchor Investor	No. of Shares	% of Anchor Portion	Value Allocated
Fidelity India Focus Fund	2,32,344	7.70%	Rs.24.00 crore
Fidelity Emerging Market Fund	2,32,344	7.70%	Rs.24.00 crore
Nomura Funds Ireland	1,74,258	5.77%	Rs.18.00 crore
Goldman Sachs India Fund	1,54,896	5.13%	Rs.16.00 crore
SBI Contra Fund	1,30,690	4.33%	Rs.13.50 crore
HDFC Focused 30 Fund	1,54,896	5.13%	Rs.16.00 crore
HSBC Global Investments	1,35,534	4.49%	Rs.14.00 crore
Morgan Stanley India	1,35,534	4.49%	Rs.14.00 crore
Ashoka India Opportunities Fund	1,54,896	5.13%	Rs.16.00 crore
University of Notre Dame	1,54,896	5.13%	Rs.16.00 crore
Volrado Investments	1,54,896	5.13%	Rs.16.00 crore
Aberdeen Standard Asia	1,16,172	3.85%	Rs.12.00 crore
Theleme India Master Fund	1,16,172	3.85%	Rs.12.00 crore

_{Data Source: BSE Filings}

With strong signals coming from the GMP and with premiums of over 77%, the anchor response has been 30% of the total issue size. The QIB portion in the MapmyIndia 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. MapmyIndia has been a mix, getting good response from FPIs, and domestic mutual funds and insurances.

Major global investors included Fidelity, Nomura, Goldman Sachs, Morgan Stanley, Volrado, University of Notre Dame, Theleme etc. Domestic funds and insurances in the anchor list included SBI MF, ICICI Pru MF, Nippon India MF, Tata MF, Sundaram MF, IDFC Fund etc.

Out of the total 30.19 lakh shares allotted by way of anchor placement, MapmyIndia allotted a total of 10.06 lakh shares to domestic mutual funds.

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