Fonebox Retail IPO Allotment Status

Tanushree Jaiswal Tanushree Jaiswal 31st January 2024 - 01:49 pm
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About the IPO of Fonebox Retail Ltd

The stock of Fonebox Retail Ltd has a face value of ₹10 per share and it is a book built issue. The price band for the book built issue has been set in the range of ₹66 to ₹70 per share. The final price of the IPO will be decided by book building within this price band. The IPO of Fonebox Retail Ltd has only a fresh issue component and no offer for sale (OFS) portion. As part of the fresh issue portion of the IPO, Fonebox Retail Ltd will issue a total of 29,10,000 shares (29.10 lakh shares), which at the upper band of the book building band of ₹70 per share aggregates to fresh fund raising of ₹20.37 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also double up as the overall IPO size. Therefore, the overall IPO size will also comprise of the issue of 29,10,000 shares (29.10 lakh shares) which at the upper IPO band price of ₹70 per share will aggregate to overall IPO size of ₹20.37 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 1,46,000 shares. The name of the market maker for the issue is yet to be announced.. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. Post the IPO, the share of promoters will dilute from 100.00% to 71.64%. The fresh issue funds will be used by the company for meeting working capital expenses and for general corporate purposes. Beeline Capital Advisors Private Ltd will be the lead manager to the issue, and KFIN Technologies Ltd will be the registrar to the issue.
What you must know about allotment status checking

Allotment status online is an internet facility that is provided by the BSE (formerly Bombay Stock Exchange) in the case of mainboard IPOs and BSE SME Segment IPOs as well as by the registrars on their website. Many of the brokers also provide direct connectivity to the database. However, in the absence of any connectivity, one option you always can use is the registrar access to the allotment status. In this case, Fonebox Retail Ltd is an NSE SME Emerge IPO and hence the data would not be available on the website of BSE. 

NSE does not provide this facility on its website. That means; you can only check the allotment status on the website of the IPO registrar, KFIN Technologies Limited (formerly Karvy Computershare). The allotment in the IPO will depend on the extent of the oversubscription across the retail, HNI / NII and the QIB portion and it is the valid applications that will make the cut. But we will look at that later. Let us first look at how to check the allotment status of the Fonebox Retail Ltd IPO. Here are the steps.

When and where to check the allotment status?

When can the allotment status be checked. The IPO allotment status will be finalized on 31st January, 2024. Hence, either late on 31st January 2024 or by middle of 01st February 2024, the allotment status can be checked online on the website of the IPO registrar. Where can the allotment status be checked? Typically, in all the mainboard issues, it is possible to get the allotment status of the IPO either at the BSE website or on the website of the registrar to the IPO. 
However, Fonebox Retail Ltd IPO being an NSE-SME Emerge IPO, it would be listed only on the NSE and not on the BSE. Hence BSE will not be providing the allotment status for this IPO, while NSE does not normally offer online allotment status on their website. Hence, in the case of Fonebox Retail Ltd IPO, the only way is to check on the website of KFIN Technologies, the registrar to the IPO.

Checking the allotment status on KFIN Technologies Ltd (Registrar to IPO)

Visit the website of KFIN Technologies Ltd, which has been appointed as the registrar for the issue. You can access their website for IPO status by clicking on the link below:

https://ris.kfintech.com/ipostatus/

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there is also a way to access this page via the home page of KFIN Technologies Ltd but that pathway is slightly more complex as the website is designed more as a B2B website, so you can avoid that.
Here you are given the choice to select 5 servers viz. Link 1, Link 2, Link 3, Link 4, and Link 5. There is nothing to be confused, as these are just server backups in case one of the servers is experiencing too much traffic. You can select any of these 5 servers and in case you are finding problems accessing one of the servers, then try the other one. There is no difference, which server you select.

A small thing to remember here. Unlike on the BSE website, where the names of all IPOs are there on the drop-down menu, the registrar will only provide of the IPOs managed by them and where the allotment status is already finalized. Also, for simplicity, you can either choose to see all IPOs or just recent IPOs. Choose the latter, as that reduces the length of the list of IPOs you need to search through. Once you click on Recent IPOs, the dropdown will only show the recent active IPOs, so once the allotment status is finalized, you can select Fonebox Retail Ltd from the drop-down box. In this case, the name of Fonebox Retail Ltd will be available on the dropdown from 31st January 2024, when the basis of allotment is finalized.   

• There are 3 options. You can either query the allotment status based on PAN, Application Number or Demat Account (DPID-Client ID combination).

• To Query by PAN, check the appropriate box and follow these steps.
        ◦ Enter the 10-digit PAN number
        ◦ Enter the 6-digit Captcha Code
        ◦ Click on Submit button
        ◦ Allotment status gets displayed on screen

• To Query by Application Number, check the appropriate box and follow these steps.
        ◦ Enter the Application Number as it is
        ◦ Enter the 6-digit Captcha Code
        ◦ Click on Submit button
        ◦ Allotment Status gets displayed on screen

In the past, the first step was to select Application Type (ASBA or Non-ASBA) before inputting your application number. Now, that step has been done away with.

• To Query by Demat Account, check the appropriate box and follow these steps.
        ◦ Select the depository (NSDL / CDSL)
        ◦ Enter the DP-ID (Alphanumeric for NSDL and Numeric for CDSL)
        ◦ Enter the Client-ID
        ◦ In the case of NSDL, the Demat account is 2 strings
        ◦ In the case of CDSL, the Demat account is just 1 string
        ◦ Enter the 6-digit Captcha Code
        ◦ Click on Submit button
        ◦ Allotment Status gets displayed on screen

It is always advisable to retain a saved screenshot of the allotment status output for future reference. The same can be tallied with the demat account credit subsequently after the demat allocation is completed by the end of 01st February 2024. The demat credit to the extent of shares allotted in the IPO would be visible under (ISIN - INE0Q4701019) in your demat account mandate provided in the IPO application. Nowadays, the refunds are issued and the demat allocation is also down on the same day, so there is not time lag and you can check both the data points from demat account and bank account on the same day.

Subscription Status for the Fonebox Retail IPO

Here is the final subscription status of the Fonebox Retail Ltd IPO as at close on 30th January 2024, at 18.30 hours.

Investor
Category
Subscription
(times)
Shares
Offered
Shares
bid for
Total Amount
(₹ in crore)
Anchor Investors 1 8,26,000 8,26,000 5.78
Market Maker 1, 1,46,000 1,46,000 1.02
QIB Investors 138.69 5,56,000 7,71,14,000 539.80
HNIs / NIIs 819.99 4,16,000 34,11,14,000 2,387.80
Retail Investors 886.32 9,70,000 85,97,34,000 6,018.14
Total 659.42 19,38,000 1,27,79,62,000 8,945.73
Total Applications: 4,29,867 applications (886.32 times)

The issue was open for retail investors, QIB investors and for the HNI / NIIs. There was a broad quota designed for each of the segments viz. the retail, the QIB and the HNI NII. As can be seen above, the overall IPO got subscribed at an impressive 659.42 times with the retail portion subscribed 886.32 times, and the HNI / NII portion subscribed 819.99 times at the close of the third and final day of the IPO on 30th January 2024. Even the QIB portion got subscribed by an impressive 138.69 times at close

The table below captures the allocation reservation done for each of the categories. 

Investor Category Shares Reservation Quota
Market Maker Shares 1,46,000 shares (5.02%)
Anchor Shares Offered 8,26,000 shares (28.38%)
QIB Shares Offered 5,56,000 shares (19.11%)
NII (HNI) Shares Offered 4,16,000 shares (14.30%)
Retail Shares Offered 9,70,000 shares (33.33%)
Total Shares Offered 29,10,000 shares (100.00%)

The net issue in the IPO above is the issue size net of the market making portion. The anchor allocation above is carved out of the overall QIB quota. The market maker uses the shares to offer buy and sell quotes on the counter post listing so as to keep the counter liquid and reduce the basis risk of trading in the stock.

Brief on the next steps on Fonebox Retail Ltd IPO

With the IPO closed for subscription at the end of January 30th, 2024, the next piece of action shifts to the finalization of the basis of allotment and later to the listing of the IPO. The basis of allotment will be finalized on 31st January 2024 and the refunds will be initiated on 01st February 2024. In addition, the demat credits are also expected to happen on 01st February 2024 and the stock is scheduled to list on 02nd February 2024 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The demat credits to the demat account to the extent of allotment will happen by the close of 01st February 2024 under ISIN Number (INE0Q4701019).

Investors would do well to remember that the level of subscription is very material as it determines the chances of getting allotment. Normally, higher the subscription ratio, lower the chances of allotment and vice versa. In this case, the subscription levels have been very high in the IPO; both in the Retail segment and also in the HNI / NII segment. Investors in the IPO need to assess their chances of allotment accordingly. The final status will be known once the basis of allotment is finalized and uploaded for you to check. You can apply the above allotment checking process flow after the basis of allotment is finalized.

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