Uma Exports Ltd IPO - Subscription Day 2

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IPO
by 5paisa Research Team Last Updated: 2022-03-29T17:43:48+05:30

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-2, Uma Exports IPO was subscribed 4.17 times overall, with some good demand traction seen in the retail segment followed by some buying interest from the QIB and the HNI / NII segment. The initial public offer (IPO) will close for subscription on Wednesday, 30th March 2022.

As of close of 29th March 2022, out of the 92.31 lakh shares on offer in the IPO, Uma Exports Ltd saw bids for 384.77 lakh shares. This implies an overall subscription of 4.17 times. The granular break-up of subscriptions was dominated by retail investors followed by the QIBs and then by HNI / NII investors.

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 2
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

1.00 Times

Non Institutional Investors (NII)

0.94 Times

Retail Individuals

5.62 Times

Employees

Not Appliable

Overall

4.17 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.
 

Check - Uma Exports Ltd IPO - Subscription Day 1


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 1.85 lakh shares at the close of Day-2, implying 1 time subscription for QIBs at the close of Day-2.

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

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HNI / NII Portion

The HNI portion got subscribed 0.94X or 94% (getting applications for 25.18 lakh shares against the quota of 26.77 lakh shares). This is a relatively tepid response at the close of Day-2 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, so a clearer picture should emerge by end of Wednesday.

Retail Individuals

The retail portion was subscribed a relatively strong 5.62 times at the close of Day-2. Retail interest is normally seen in the first 2 days, so the eventual interest level looks to be building up for a steady 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 357.74 lakh shares, which included bids for 290.49 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.

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