Star Health & Allied Insurance IPO - Anchor Placement details

5paisa Research Team 5paisa Research Team 9th December 2022 - 12:01 pm

The anchor issue of Star Health & Allied Insurance saw a robust response on 29-November and the announcement was made late on Monday. The Star Health & Allied Insurance IPO opens on 30-November in the price band of Rs.870-900 and shall remain open for 3 days up to 02-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 Star Health & Allied Insurance

On 29-November, Star Health 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 3,57,45,901 shares were allotted to a total of 62 anchor investors. The allocation was done at the upper IPO price band of Rs.900 which resulted in an overall allocation of Rs.3,217.13 crore.

Listed below are the 11 anchor investors who have been allotted more than 2.5% of the anchor allocation each in the IPO.

Out of the total anchor allocation of Rs.3,217.13 crore, these 11 major anchor investor accounted for 60% of the overall anchor allocation.

Anchor Investor	No. of Shares	% of Anchor Portion	Value Allocated
BNP Paribas - ODI	31,00,816	8.67%	Rs.279.07 crore
Ballie Gifford Pacific Fund	27,76,208	7.77%	Rs.249.86 crore
WF Asian Smaller Companies Fund	27,30,992	7.64%	Rs.245.79 crore
The New Economy Fund	24,82,928	6.95%	Rs.223.46 crore
Monetary Authority of Singapore	24,64,336	6.89%	Rs.221.79 crore
Janchor Partners Fund	19,01,840	5.32%	Rs.171.17 crore
WCM Focused EM Fund	13,85,424	3.88%	Rs.124.69 crore
Universities Superannuation	12,40,320	3.47%	Rs.111.63 crore
Valiant Mauritius Fund	11,58,704	3.24%	Rs.104.28 crore
Goldman Sachs - ODI	10,98,672	3.07%	Rs.98.88 crore
Ashoka India Opportunities Fund	10,46,016	2.93%	Rs.94.14 crore

_{Data Source: BSE}

Despite the weak signals coming from the GMP, the anchor response has been 44% 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 flow.

Check - Grey Market Premium of Star Health

One interesting inference one can draw is that, like in the Paytm issue, the domestic mutual funds have been largely inactive barring a couple of mutual funds like Mirae AMC and Edelweiss AMC.

Among other domestic anchor investors were IIFL Opportunities Fund and a host of insurance companies including HDFC Life, Max Life Insurance and Bharti AXA Life.

It may be noted that among the major investors, two are suffixed as ODI. These refer to offshore derivative instruments.

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