Magenta Lifecare IPO Allotment Status

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 7th June 2024 - 07:22 pm

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About the Magenta Lifecare IPO

The stock of Magenta Lifecare has a face value of ₹10 per share and it is a fixed price issue. The price for the fixed price issue is set at ₹35 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of Magenta Lifecare has only a fresh issue component and no offer for sale (OFS) portion.

While the fresh issue portion is EPS dilutive and equity dilutive, but OFS is just a transfer of ownership and  hence it is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Magenta Lifecare will issue a total of 20,00,000 shares (20.00 lakh shares), which at the fixed IPO price of ₹35 per share aggregates to fresh fund raising of ₹7.00 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 20,00,000 shares (20.00 lakh shares) which at the fixed IPO price of ₹35 per share will aggregate to overall IPO size of ₹7.00 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 1,04,000 shares. Sunflower Broking Private Ltd will be the market maker to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The company has been promoted by Divyesh Modi and Khyati Modi. The promoter holding in the company currently stands at 84.06%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 59.59%. The fresh issue funds will be used by the company towards mainly funding the working capital gaps in the regular operations of the company. Fedex Securities Private Ltd will be the lead manager to the issue, and Cameo Corporate Services Ltd will be the registrar to the issue. The market maker for the issue is Sunflower Broking Private Ltd. The Magenta Lifecare IPO will be listed on the SME IPO segment of the BSE.

How to check the Ipo allotment status of Magenta Lifecare 

How to check the allotment status, Since this is a BSE-SME IPO, you can check the allotment status on the BSE website or on the registrar website. Remember, the BSE only offers allotment status update on its website for mainboard IPOs and for BSE-SME IPOs. If you have applied for the IPO, you can either check your allotment status on the BSE website (being a BSE-SME IPO) or on the website of the IPO registrar, Cameo Corporate Services Ltd. You can also use a broker link; in case your broker is giving such a direct linkage. Here are the steps that you need to follow to check allotment status. Let us first see how to check allotment status on the BSE website.
Checking the allotment status of Magenta Lifecare IPO on BSE website

This is a facility available to mainboard IPOs and BSE SME IPOs. You can access the allotment status of Magenta Lifecare (BSE-SME IPO) on the website of BSE India as under. You can start by clicking on the link below or pasting it on the address bar.

https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.

• Under Issue Type – Select Equity Option

• Under Issue Name – Select Magenta Lifecare   from the drop down box

• Enter the Application Number exactly as in the acknowledgement slip

• Enter the PAN (10-digit alphanumeric) number

• Once this is done, you need to click on the Captcha to verify that you are not a robot

• Finally click on the Search Button

In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters i.e., either the application / CAF number or the PAN number of the investor.

The ipo allotment status will be displayed on the screen in front of you informing about the number of shares of Magenta Lifecare   allotted into your demat account. It is always advisable to save a screenshot of the allotment status output for subsequently verifying with the demat account credits on or after 11th June 2024. The stock of Magenta Lifecare  will appear in the demat account (if allotted) under ISIN Number (INE0QZ901011).

Checking the IPO allotment status of Magenta Lifecare on the website of Cameo Corporate Services Ltd (Registrar to IPO)

Visit the Cameo Corporate Services Ltd registrar website for IPO status by clicking on the link below:

https://ipo.cameoindia.com/

There are three things to remember. Firstly, there also a way to access this page via the home page of Cameo Corporate Services and clicking on the IPO Status link under the Useful Links drop down at the top of the page. Secondly, you can just click on the hyper link given above and directly go to the allotment checking page. The third option, in case you are not able to click on the link, is to copy the link and paste in your web browser.
Once you reach the relevant page as explained above, the first thing you do is to select the company you want to access the allotment status for. The drop down box will only show companies where the allotment status is already finalized. In this case, you can get to see the name of Magenta Lifecare on the list around 10th June 2024 when the allotment status is finalized. Once the company name appears on the drop down, you can click on the company name and go to the next screen.

Input Options to check your ipo allotment status

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Magenta Lifecare from the dropdown box. The allotment status will be finalized on 10th June 2024, so in this case, you can access the details on the registrar website either late on 10th June 2024 or by middle of 11th June 2024. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO. The preferred method, out of the 3 options, can be selected from the same screen by opting for the preferred radio button.

• Step 1, you can search by Beneficiary ID of your demat account. From the page you just need to first select the DP ID / Client ID option. It does not matter whether it is an NSDL account or a CDSL account. All you need to do is to write down the combination of the DP ID and the Client ID in a single string. In the case of NSDL, enter the DP id and Client id in a single string without space. In case of CDSL, just enter the CDSL client number. Remember that the NSDL string is alphanumeric while the CDSL string is a numeric string. The details of your DP and client ID are available in your online DP statement or in the statement of account. After that you can click the Search Button in either cases.

• Step 2, you can access with Application Number / CAF Number. Enter the Application / CAF number and then click on Search Button. Enter the application exactly it is given in the acknowledgement slip given to you post the IPO application process. After that you can click on the Search button to get the details of shares allotted to you in the IPO.

• Step 3, you can also search by Income Tax PAN number. Once you select PAN (permanent account number) from the dropdown menu, enter your 10-digit PAN number, which is an alphanumeric code. The PAN number will be available on your PAN card or on top of your income tax returns filed. Once you enter the PAN, click on the Search Button.

• In all the 3 cases above, please note that after inputting the details as relevant, there will be a 6-digit captcha that will appear and you must enter the captcha exactly as it is. It is fully a numeric captcha and it is meant to confirm that it is not a robotic access. In case you find that the captcha code is not too clear, 
The IPO status with number of shares of Magenta Lifecare allotted will be displayed on the screen. The screen will show the name of the first holder of the demat account, the number of allotted shares, the refund amount (if any), refund mode (cheque / ECS / ASBA) and the query number.

You can save a screenshot of the screen for future reference. Once again, you can verify the demat credit by the close of 11th June 2024 with the following details viz. (ISIN - INE0QZ901011). Remember that the most important factor in assessing your chances of getting allotment is the extent of oversubscription in the IPO. Normally, higher the oversubscription in the IPO, the lower are your chances of getting an allotment. Now, let us look at the extent of oversubscription that the IPO of Magenta Lifecare got. 

Subscription response to the IPO of Magenta Lifecare

The response to the BSE-SME IPO of Magenta Lifecare was strong as the overall issue was subscribed 983.24X at the close of bidding on 07th June 2024, which is well above the median subscription that the BSE-SME IPOs have been getting in general. Out of the overall bids received, the retail segment saw 778.41 times subscription and the non-retail HNI / NII portion saw 1,188.08 times subscription. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 07th June 2024.

Investor 
Category

 
Subscription 
(times)

 
Shares 
Offered

 
Shares 
bid for

 
Total Amount 
(₹ in Crore)

 
Market Maker 1.00 1,04,000 1,04,000 0.36
HNIs / NIIs 1,188.08 9,48,000 1,12,62,96,000 3,942.04
Retail Investors 778.41 9,48,000 73,79,32,000 2,582.76
Total 983.24 18,96,000 1,86,42,28,000 6,524.80


Data Source: BSE

The issue has been very strongly subscribed; hence your chances of allotment would proportionately reduce. Investors must keep these calculations in mind while checking the allotment status once it is finalized at the registrar end. Of course, it would eventually depend on the basis of allotment as finalized by the company and approved by exchanges.

The issue is split into retail and HNI portion with a small allocation for the market maker to the IPO. The break-down of the reservation for  different categories of investors is as under.

Investor Category Shares Allocated in the IPO
Market Maker Shares 1,04,000 shares (5.20% of the total issue size)
QIB Shares Offered There is no QIB allocation in the IPO
NII (HNI) Shares Offered 9,48,000 shares (47.40% of the total issue size)
Retail Shares Offered 9,48,000 shares (47.40% of the total issue size)
Total Shares Offered 20,00,000 shares (100.00% of total issue size)

Data Source: Company RHP

Next steps in the BSE-SME IPO process of Magenta Lifecare

The issue opened for subscription on 05th June 2024 and closed for subscription on 07th June 2024 (both days inclusive). The basis of allotment will be finalized on 10th June 2024 and the refunds will be initiated on 11th June 2024. In addition, the demat credits are expected to also happen on 11th June 2024 and the stock will list on 12th June 2024 on the BSE SME IPO segment. The credits to the demat account to the extent of shares allotted will happen by the close of 11th June 2024 under ISIN (INE0QZ901011).

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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