Mangalam Alloys IPO : How to check the Allotment Status
The Mangalam Alloys Ltd IPO comprises of a fresh issue and an offer for sale (OFS). As part of the fresh portion of the IPO, Mangalam Alloys Ltd will issue a total of 61,26,400 shares (61.26 lakh shares approximately), which at the fixed IPO price of ₹80 per share aggregates to a total fresh fund raising of ₹49.01 crore. As part of the offer for sale (OFS) portion of the IPO, there will be a sale of 7,37,600 shares (7.38 lakh shares approximately), which at the fixed IPO price of ₹80 per share aggregates to a total OFS size of ₹5.90 crore. Therefore, the total IPO size of the Mangalam Alloys Ltd issue will be of 68,64,000 shares (68.64 lakh shares), which at the fixed IPO price of ₹80 per share aggregates to a total fresh fund raising of ₹54.91 crore.
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.
|Anchor Investor Shares Offered||Nil Shares|
|Market Maker Shares Offered||3,44,000 Shares (5.01%)|
|Other Shares Offered||32,59,200 Shares (47.48%)|
|Retail Shares Offered||32,60,800 Shares (47.51%)|
|Total Shares Offered||68.64,000 Shares (100.00%)|
Let us turn first to when you can check the allotment status of the shares online.
When can you check allotment status online?
The basis of allotment will be finalized on Friday, 29th September 2023, the refunds will be initiated on 03rd October 2023, demat credits will be finalized on 04th October 2023, while the stock of Mangalam Alloys Ltd will get listed on the NSE SME Emerge segment on 05th October 2023. The company had a pre-IPO promoter holding of 81.17% and post the IPO, the promoter stake in Mangalam Alloys Ltd will stand diluted to 59.74%. On listing, the company will have an indicative P/E ratio of 14.65X, which is reasonable for the sector.
How to check the allotment status. Since this is an NSE SME IPO, there is no facility to check on the exchange website and BSE only offers allotment status in the case of mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can check your allotment status online on the website of the IPO registrar, Skyline Financial Services Private Ltd. Here are the steps that you need to follow to check allotment status.
Checking the allotment status of Mangalam Alloys Ltd on the website of Skyline Financial Services Private Ltd (Registrar to IPO)
Visit the Skyline Financial Services Private Ltd registrar website for IPO status by clicking on the link below:
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 Mangalam Alloys Ltd on the list around 29th September 2023 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.
This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Mangalam Alloys Ltd from the dropdown box. The allotment status will be finalized on Friday, 29th September 2023, so in this case, you can access the details on the registrar website either late on 29th September 2023 or by middle of 30th September 2023. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO. Any of the three options can be selected from the same screen by opting for the preferred radio button.
- Firstly, 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.
- Secondly, you can access with Application Number / CAF Number. Enter the Application / CAF number and then click on Search Button. Enter the application exactly as 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.
- Thirdly, 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.
The IPO status with number of shares of Mangalam Alloys Ltd allotted will be displayed on the screen. You can save a screenshot of the screen for future reference. Once again, you can verify the demat credit by the close of 04th October 2023. 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 Mangalam Alloys Ltd got.
Subscription response to the IPO of Mangalam Alloys Ltd
The response to the IPO of Mangalam Alloys Ltd was moderate as the overall issue was subscribed 5.57X at the close of bidding on 25th September 2023 which is below the median subscription that the NSE SME IPOs have been getting in general. Out of the overall bids received, the retail segment saw 8.73 times subscription and the non-retail HNI / NII portion saw 2.41 times subscription. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 25th September 2023.
|HNI / NIIs||2.41||32,59,200||78,48,000||62.78|
With a relatively low level of subscription, the applicants who put bids in this IPO can hope for allotment in this case.
Quick word on the business profile of Mangalam Alloys Ltd
Mangalam Alloys Ltd was incorporated in the year 1988 and is a key manufacturer of stainless-steel-based products. In terms of its product portfolio, Mangalam Alloys Ltd manufactures SS Ingots, SS Black Bar, SS RCS, SS Bright Round Bar, Bright Hex Bar, Bright Square Bar, Angle, Patti, Forgings etc. The company manufactures fasteners in more than 30 international grades and in the size range from 3 mm to 400 mm. Typically, Mangalam Alloys Ltd makes stainless steel ingots through 3 furnaces by melting stainless steel scrap, rolling ingots to stainless steel rounds & flats followed by heat treatment annealing. The manufacturing facility of Mangalam Alloys is spread across an area of 40,000 square metres (SQM) with an existing installed melting capacity of 25,000 tonnes per annum (TPA). The revenues of the company have shown steady and secular growth over the last 3 years.
The company has been promoted by Uttam Chand Mehta and Tushar Mehta. With the IPO being a combination of fresh issue and offer for sale, the promoter stake will get diluted post the IPO. The fresh issue funds will be used by the company for meeting its working capital funding gaps and for capex for business expansion and R&D. Part of the monies raised will also go towards general corporate expenses. While Expert Global Consultants Private Ltd will be the lead manager to the issue, Skyline Financial Services Private Ltd is the registrar to the issue. The market maker for the issue is Rikhav Securities Ltd.
DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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