What happened
Ahead of its public issue, EAAA India Alternatives has collected about ₹360 crore from a group of anchor investors. The initial public offering (IPO) opens for public bidding on 26 October. According to reports in the Economic Times and BusinessLine, the company allotted 21,62,161 equity shares at ₹1,665 each, the top of the price band.
Anchor investors are large institutions that are offered shares a day before the issue opens to the public. Their participation is often read as an early sign of institutional interest.
Ten mutual funds took part and accounted for 61% of the anchor allocation. HDFC, ICICI Prudential, SBI, Nippon India and Kotak Mahindra mutual funds were among them, along with Bandhan, HSBC, 360 ONE, Abakkus and Trust. Norway’s Government Pension Fund Global and Schroders also took part, as did Indian firms Carnelian, 360 ONE, Unifi and Nuvama.
Issue details
- Issue size: ₹1,200 crore, down from the ₹1,500 crore proposed in the draft prospectus filed with SEBI in January.
- Price band: ₹1,585 to ₹1,665 per share. BusinessLine reported a valuation of ₹10,765 crore at the upper end.
- Subscription: 26 October to 28 October.
- Allotment: expected on 29 October. Listing on BSE and NSE: tentatively 2 November.
- Minimum retail bid: nine shares, or ₹14,985 at the upper end.
Axis Capital, Jefferies, Motilal Oswal and Nuvama are the lead managers.
What it means for you
The entire issue is an offer for sale (OFS), where existing shareholders sell their shares rather than the company issuing new ones. Promoter Edelweiss Securities and Investments Private Limited is selling 72.07 lakh shares, so the money goes to the seller and EAAA India Alternatives receives nothing.
If you plan to apply, the numbers above set the minimum outlay. Read the offer documents before bidding. This article is not a recommendation to apply or avoid the issue. Read more on the IPO process or see our earlier report on the issue.
Background
Incorporated in 2008, EAAA India Alternatives is an alternative investment platform and an arm of Edelweiss Financial Services. It works mainly in Real Assets, such as infrastructure, commercial real estate and energy transition, and in Private Credit. It also offers portfolio management services. It operates from Mumbai, New Delhi, GIFT City and Singapore, and serves institutions, high-net-worth individuals and family offices.
