BhartiInfratel Limited (BIL) which is tapping the capital markets with its issue for 18.89 cr shares in a price band of Rs 210-240 completed its allocation to anchor investors yesterday. The company allotted a total of 2,83,35,000 Equity shares at a price of Rs 230. The allotment was made to 34 entities but only 12 institutions. There was excess demand of 8.32% over the QIB book and the same has been allocated on a discretionary basis.
A closer look at the key entities who have been allotted shares gives a much distorted picture of the entire anchor book. Morgan Stanley is allotted 101.85 lakh shares which is 36% of the book. Similarly Citigroup has been allotted 52.1 lakh shares or 18.4% and Wellington Management 36.87 lakh shares or 13%. There is just one domestic institution who has applied Sundaram Mutual Fund who has been allotted 9,78,500 shares or 3.45% through 18 entities. It is indeed surprising that in such a large issue just one domestic institution or mutual fund has chosen to join as anchor allocation.
One wonders whether the pricing is the concern or the industry in which BIL operates itself is the concern. Answer to this question would be available once the issue closes for QIB’s and HNI’s on Thursday the 13th of December and for retail investors on Friday the 14th of December. The company would be raising through the issue at the upper end of the price band of Rs 240, a total of Rs 4,533.6 crs. The issue consists of a fresh issue of 14.623 cr shares and an offer for sale of 4.267 cr shares by 4 private equity investors.
The complete list of allocation is given below:-
| Sr. No. | Applicant | No. Of Equity Shares applied at or above Anchor Investor Allocation Price |
Equity Shares Allocated (A) |
(A) as a percentage of Anchor Investor Portion (DA) |
| 1 | ACMBerstein SICAV-GLOBAL THEMATIC RESEARCH PORTFOLIO |
434,800 | 217,400 | 0.8% |
| 2 | AllianceBerstein Global Thematic Growth Fund Inc |
630,200 | 630,200 | 2.2% |
| 3 | AllianceBerstein Variable Products Series Fund Inc – AllianceBernstein Global Thematic Growth Portfolio |
434,800 | 217,400 | 0.8% |
| 4 | Citigroup Global Markets Mauritius Private Limited |
5,210,000 | 5,210,000 | 18.4% |
| 5 | Clough Capital Partners LP A/c Clough lnvt Partners I LP |
836,000 | 836,000 | 3.0% |
| 6 | Clough Capital Partners LP Aic Clough Offshore Fund Ltd |
451,000 | 451,000 | 1.6% |
| 7 | Columbia Acorn International | 2,717,000 | 2,717,000 | 9.6% |
| 8 | Commonwealth Equity Fund Limited | 473,500 | 473,500 | 1.7% |
| 9 | Morgan Stanley Investment Management A/C Morgan Stanley India Investment Fund Inc. | 473,500 | 473,500 | 1.7% |
| 10 | Morgan Stanley Mauritius Company Limited | 9,711,500 | 9,711,500 | 34.3% |
| 11 | Riversource Variable Series Trust – Variable Portfolio-Columbia Wanger International Equities Fund | 435,000 | 240,000 | 0.8% |
| 12 | Route One Invt Company L.P. A/c Route One Fund LP | 1,086,750 | 1,086,750 | 3.8% |
| 13 | Route One Invt Company L.P. A/c Route One Offshore Master Fund LP | 1,045,250 | 1,045,250 | 3.7% |
| 14 | Sundaram Mutual Fund – Sundaram Growth Fund | 86,900 | 86,900 | 0.3% |
| 15 | Sundaram Mutual Fund – Sundaram Tax Saver(Open Ended Fund) | 434,800 | 434,800 | 1.5% |
| 16 | Sundaram Mutual Fund – Sundaram Equity plus | 43,500 | 43,500 | 0.2% |
| 17 | Sundaram Mutual Fund – Sundaram Select Thematic FD Capex Opp – Dividend | 21,700 | 21,700 | 0.1% |
| 18 | Sundaram Mutual Fund – Sundaram Select Thematic FD Capex Opp – Growth | 130,400 | 130,400 | 0.5% |
| 19 | Sundaram Mutual Fund – Sundaram Select Thematic Funds Rural India Fund | 86,900 | 86,900 | 0.3% |
| 20 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 2 years(Series 1) | 3,900 | 3,900 | 0.0% |
| 21 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 2 years(Series 2) | 2,600 | 2,600 | 0.0% |
| 22 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 2 years(Series 3) | 4,350 | 4,350 | 0.0% |
| 12C | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 2 years(Series 4) | 9,150 | 9,150 | 0.0% |
| 22 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 2 years(Series 3) | 4,350 | 4,350 | 0.0% |
| 23 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 2 years(Series 4) | 9,150 | 9,150 | 0.0% |
| 24 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 3 years(Series 3) | 12,200 | 12,200 | 0.0% |
| 25 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 3 years(Series 4) | 23,900 | 23,900 | 0.1% |
| 26 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 3 years(Series 5) | 12,600 | 12,600 | 0.0% |
| 27 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 3 years(Series 6) | 11,700 | 11,700 | 0.0% |
| 28 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 3 years(Series 7) | 11,300 | 11,300 | 0.0% |
| 29 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 5 years(Series 2) | 17,400 | 17,400 | 0.1% |
| 30 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 5 years(Series 3) | 36,500 | 36,500 | 0.1% |
| 31 | Sundaram Mutual Fund A/c Sundaram Capital Protection Oriented Fund 5 years(Series 4) | 28,700 | 28,700 | 0.1% |
| 32 | Wanger International | 435,000 | 360,000 | 1.3% |
| 33 | Wellington Management Company, LLP A/C BAY POND BMD MB | 2,057,400 | 1,420,700 | 5.0% |
| 34 | Wellington Management Company, LLP A/C BAY POND MB | 3,282,300 | 2,266,300 | 8.0% |
| Total | 30,962,500 | 28,335,000 | 100% |
