Uma Exports Ltd IPO - Subscription Day 1

uma-exports-ipo

by 5paisa Research Team Last Updated: Dec 11, 2022 - 01:49 am 33k Views
Listen icon

The Rs.60 crore IPO of Uma Exports Ltd, consisting entirely of a fresh issue of shares worth of Rs.60 crore, saw strong retail response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the end of Day-1, Uma Exports IPO was subscribed 2.14 times overall, with some good demand traction seen in the retail segment followed by some buying interest from the HNI / NII segment. The initial public offer (IPO) will close for subscription on Wednesday, 30th March 2022.

As of close of 28th March 2022, out of the 92.31 lakh shares on offer in the IPO, Uma Exports Ltd saw bids for 197.13 lakh shares. This implies an overall subscription of 2.14 times.

The granular break-up of subscriptions was dominated by retail investors followed by the HNI / NII investors with NIL demand seen from QIBs. Normally, it is only on the last day of bidding, the NII/HNI bids and the QIB bids build up substantial momentum. We should get a clearer picture by the end of third day of subscription only.


Uma Exports IPO Subscription Day 1
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.00 Times

Non Institutional Investors (NII)

0.46 Times

Retail Individuals

2.90 Times

Employees

Not Applicable

Overall

2.14 times

 

QIB Portion

Since the size of the IPO was very small at just about Rs.60 crore, there has been no anchor placement of shares done ahead of the IPO. Normally anchor placement is more common among larger issues. The anchor placement has a lower lock-in compared to a pre-IPO placement, but it cannot be issued below the IPO price.

Normally, the anchor placement is a good signal of institutional interest in a stock, ahead of its IPO, and gives market confidence. QIB quota is just 2% of the overall issue while Retail is 69% and HNI / NII portion is 29%.

The QIB portion (net of anchor allocation if any) has a quota of 1.85 lakh shares of which it has got bids for NIL shares at the close of Day-1, implying NIL subscription for QIBs at the close of Day-1.

However, QIB bids typically get bunched on the last day, although we have to wait and see how the response mechanism of QIBs build up in the next 2 days of the IPO.

HNI / NII Portion

The HNI portion got subscribed 0.46X or 46% (getting applications for 12.41 lakh shares against the quota of 26.77 lakh shares). This is a relatively OK response at the close of Day-1 with most of the response coming from corporates followed by HNI individuals.

However, this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only.

Retail Individuals

The retail portion was subscribed a relatively strong 2.90 times at the close of Day-1. Retail interest is normally seen in the first 2 days, so the eventual interest level looks to be building up for Day-2 and partially on Day-3. It must be noted that retail allocation is 69% in this IPO.

For retail investors; out of the 63.69 lakh shares on offer, valid bids were received for 184.72 lakh shares, which included bids for 154.15 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.65-Rs.68) and will close for subscription on 30th March 2022.

Also Read:-

Upcoming IPOs in March 2022

Upcoming IPOs in 2022

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
How ONDC is changing the ecommerce game in India?

One company is shaking things up in the ecommerce space. And that isn’t a flashy VC backed start-up. It's a company backed by the Indian government. I am talking about Open Network for Digital Commerce (ONDC). It has recorded a whopping 5.5 million transactions in December – its highest monthly figure since its inception.  To put this into perspective, in January of the previous year, ONDC had only logged 2,000 orders.

Analysis of Upcoming IPO - Platinum Industries Limited

What Platinum Industries Limited do? Platinum Industries Limited is stabilizer-producing firm that was founded in August 2016. firm produces lubricants, CPVC additives, & PVC stabilizers. Products from firm are utilized in packaging materials, rigid PVC foam boards, SPC floor tiles, electrical wires & cables, PVC fittings, PVC pipes, & more. Situated in Palghar, Maharashtra, company's production facility has 21,000 square feet of land.

Stock in Action – Vodafone Idea Ltd

Vodafone Idea’s Movement of Day