The National Stock Exchange of India Limited (NSE) has mobilised around Rs 6,746 crore from anchor investors ahead of its much-awaited initial public offering (IPO), with major domestic and global institutional investors participating in the anchor book.
According to NSE’s regulatory filing on Wednesday, September 16, the exchange allotted 3,77,93,739 equity shares to anchor investors at Rs 1,785 per share. The total value of the anchor allocation stood at Rs 6,746.18 crore.
LIC Receives Largest Anchor Allocation
The Life Insurance Corporation of India (LIC) emerged as the largest individual investor in NSE’s anchor book.
LIC was allotted 22,42,584 equity shares, accounting for 5.93% of the total anchor allocation. At the allocation price of Rs 1,785 per share, the shares allotted to LIC were worth approximately Rs 400.30 crore.
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Add INDYASTORY on GoogleThe anchor book also attracted several prominent international institutional investors, including Government Pension Fund Global, Monetary Authority of Singapore, Abu Dhabi Investment Authority, Fidelity-managed funds, Goldman Sachs, Eastspring Investments India, Carmignac Portfolio and Morgan Stanley.
Domestic Mutual Funds Account for Nearly 37% of Anchor Allocation
Domestic mutual funds made up a substantial portion of NSE’s anchor investor base.
The exchange said that 13,977,524 equity shares, or 36.98% of the total shares allocated to anchor investors, were allotted to 29 domestic mutual funds through a combined 98 schemes.
The participating fund houses included SBI, ICICI Prudential, HDFC, Nippon India, Kotak, Axis, Aditya Birla Sun Life, UTI, Mirae Asset, Tata, Invesco, Quant, WhiteOak Capital and HSBC, among others.
The broad participation from mutual fund schemes adds to the institutional component of the anchor book ahead of the public issue.
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Add INDYASTORY on GooglePension Funds and Life Insurers Also Participate
Life insurance companies and pension funds were another significant category of investors in the anchor allocation.
Alongside LIC, the participating institutions included SBI Life Insurance, HDFC Life Insurance, SBI Pension Funds, HDFC Pension Fund, Axis Max Life Insurance, UTI Pension Fund and Kotak Mahindra Life Insurance.
According to NSE, 6,060,744 equity shares, representing 16.04% of the overall anchor allocation, were allotted to 27 life insurance companies and pension funds.
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Add INDYASTORY on GoogleGlobal Investors Commit Significant Amounts
Several large overseas institutional investors also received allocations in the anchor book.
NSE’s filing showed that Government Pension Fund Global received shares valued at approximately Rs 250 crore. The Monetary Authority of Singapore and Abu Dhabi Investment Authority each received allocations worth around Rs 200 crore.
The participation of these institutions comes ahead of NSE’s planned public issue and forms part of the institutional allocation process before the IPO opens for broader subscription.
NSE IPO Opens on September 17
The anchor allocation has been completed just ahead of the opening of NSE’s IPO for public subscription on Thursday, September 17.
The issue is structured entirely as an offer for sale (OFS), meaning the shares being offered are existing shares sold by shareholders rather than newly issued equity by NSE.
The IPO has a price band of Rs 1,700 to Rs 1,785 per equity share, with the upper end of the price band matching the anchor investor allocation price.
The strong participation from domestic mutual funds, insurers, pension funds and global institutional investors provides an early indication of the institutional interest surrounding NSE’s public offering, although the anchor allocation itself does not determine how the IPO will perform after listing.
