Asia-focussed equity hedge fund Steadview Capital Mauritius Ltd and world’s oldest sovereign wealth fund Kuwait Investment Authority are among 15 anchor investors which have bet on Dixon Technologies (India) Ltd’s initial public offering that opened on Wednesday.
Goldman Sachs India Fund and Nomura Funds Ireland are among other foreign investors which took part in the anchor allotment on Tuesday.
Anchor investors are institutional investors who accept a one-month lock-in period for a sizeable allocation of shares and support a public offering. Their participation highlights investors’ confidence in an IPO and sets a benchmark for the investor community at large.
The Noida-based contract electronics manufacturer, which counts Motilal Oswal Private Equity Investment Advisors Pvt. Ltd as its PE backer, raised Rs 179.78 crore ($28.04 million) by selling 1.01 million shares to a bunch of institutional investors at the upper end of the Rs 1,760-1,766 price band.
Steadview, Kuwait Investment Authority, Goldman Sachs and Nomura Ireland each bought shares worth Rs 12.05 crore.
Anchor investors also included Indian asset managers such as SBI Asset Management, Birla Sun Life Trustee, HDFC Mutual Fund, ICICI Prudential Asset Management and Franklin Templeton Mutual Fund.
Besides, the anchor allotment saw participation from Indian insurance firm Tata AIA Life Insurance.
The IPO opensed on Wednesday and closes two days later. Dixon Technologies is seeking a valuation of as much as Rs 1,946.01 crore (around $305 million) through the IPO.
The company aims to use the fresh money towards payment of borrowings worth Rs 22 crore besides spending Rs 7.57 crore for setting up an LED TV-manufacturing unit at its Tirupati facility.
The company also aims to spend Rs 8.85 crore towards enhancing backward integration capabilities in the lighting products vertical and Rs 10.6 crore for upgrading the IT infrastructure facility, in addition to general corporate purposes.
At the upper end of the price band, the IPO size is Rs 545.27 crore ($85.3 million) and will result in a 28% stake dilution on a post-issue basis.
By Baishakhi Dutta
