Zenith Drugs IPO Allotment Status

Zenith Drugs IPO Allotment Status
Zenith Drugs IPO Allotment Status

by Tanushree Jaiswal Last Updated: Feb 23, 2024 - 12:06 pm 456 Views
Listen icon

Quick take on the IPO of Zenith Drugs Ltd 

The stock of Zenith Drugs Ltd has a face value of ₹10 per share and it is a book building issue. The price for the book building issue is set in the price band of ₹75 to ₹79 per share. Being a book built issue, the price will be discovered in the above band. The Zenith Drugs IPO has only a fresh issue component and no offer for sale (OFS) portion. 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, Zenith Drugs Ltd will issue a total of 51,48,800 shares (51.488 lakh shares), which at the upper band of IPO price of ₹79 per share aggregates to fresh fund raising of ₹40.68 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 51,48,800 shares (51.488 lakh shares) which at the upper band IPO price of ₹227 per share will aggregate to overall IPO size of ₹40.68 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 8,52,800 shares. Gretex Share 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 promoter holding in the company post the IPO will dilute from 100% to 69.98%. The fresh issue funds will be used for purchasing of machinery and equipment for setting up the new unit, block upgradation of the existing unit, and for general working capital purposes. Some part will also go towards general corporate purposes. Gretex Corporate Services Ltd will be the lead manager to the issue, and Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is Gretex Share Broking Private Ltd.

How to check allotment status of Zenith Drugs Ltd? 

Since this is an NSE SME IPO, there is no facility to check on the exchange website. On the other hand, the BSE only offers allotment status update on its website for the mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can either check your allotment status on the website of the IPO registrar, Bigshare Services Private Limited; or you can use the broker link provided, in case your broker is giving such a direct linkage. Here are the steps that you need to follow to check allotment status on the registrar website of Bigshare Services Private Ltd.

Checking the allotment status on the website of Bigshare Services Private Limited (Registrar to IPO)

https://www.bigshareonline.com/ipo_Allotment.html

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 also a way to access this page via the home page of Bigshare Services Private Ltd by clicking on the IPO Allotment Status link displayed prominently on the home page. It all works the same, and leads you to the same landing page.

Once you enter the IPO allotment check landing page of Bigshare Services Private Ltd, you are given the choice to select from 3 servers viz. Server 1, Server 2, and Server 3. 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 3 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; the output would still be the same. This is just a method to share the server load during peak access times.

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Zenith Drugs Ltd  from the dropdown box. The basis of allotment will be finalized on 23rd February 2024, so in this case, you can access the details on the registrar website either late on 23rd February 2024 or by middle of 24th February 2024. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO.   

• Firstly, you can access the allotment status using Application Number / CAF Number. The CAF is short for Composite Application Form and it is available on the acknowledgement slip given to you when you submit the IPO application. 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. Before you see the output, you will be asked to enter a 6-digit Captcha code as given. In case, it is not clear, you can toggle for more options. The captcha is to ensure that the person accessing the allotment status is a human being and not a robot. 

• Secondly, you can search by Beneficiary ID of your demat account. From the dropdown box, you must first select the depository name where your demat account is held i.e., NSDL or CDSL. In the case of NSDL, enter the DP id and Client id in separate boxes as provided. 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 both cases. Before you see the output, you will be asked to enter a 6-digit Captcha code as given. In case, it is not clear, you can toggle for more options. The captcha is to ensure that the person accessing the allotment status is a human being and not a robot.

• 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. Before you see the output, you will be asked to enter a 6-digit Captcha code as given. In case, it is not clear, you can toggle for more options. The captcha is to ensure that the person accessing the allotment status is a human being and not a robot.

The IPO status with number of shares of Zenith Drugs 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 26th February 2024, or later.

Quota allocation and subscriptions: why they matter to allotment status?

Here is a break-up of the total shares issued by the company and its quota allocated for different classes of investors. This is the key to your chances of allotment in the IPO.

Investor Category Shares Reservation Quota
Market Maker Shares 8,52,800 shares (16.56%)
QIB Shares Offered 12,88,000 shares (25.02%)
NII (HNI) Shares Offered 8,59,200 shares (16.69%)
Retail Shares Offered 6,44,800 shares (12.52%)
Total Shares Offered 51,48,800 shares (100.00%)

The response to the IPO of Zenith Drugs Ltd was very strong and it was subscribed by 179.18X overall at the close of bidding on 22nd February 2024 with the HNI / NII segment seeing 368.77 times subscription, and the Retail portion seeing 139.28 times subscription. Even the portion reserved for the qualified institutional buyers (QIBs) got subscribed a total of 106.72X. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 22nd February 2024. The IPO was kept open for a period of 4 trading days and closed for subscription on Thursday.

Investor
Category
Subscription
(times)
Shares
Offered
Shares
bid for
Total Amount
(₹ in crore)
Anchor Investors 1 12,88,000 12,88,000 10.18
Market Maker 1 8,52,800 8,52,800 6.74
QIB Investors 106.72 8,59,200 9,16,97,600 724.41
HNIs / NIIs 368.77 6,44,800 23,77,82,400 1,878.48
Retail Investors 139.28 15,04,000 20,94,81,600 1,654.90
Total 179.18 30,08,000 53,89,61,600 4,257.80
Total Applications: 1,30,926 applications (139.28 times)

In the above case, the subscription is quite strong for retail and HNI / NII, and that largely reduces the chances of allotment in the IPO. The IPO was kept open for a total of 4 trading days for subscription and has just closed on 22nd February 2024.

Next steps in the IPO of Zenith Drugs Ltd

The issue opened for subscription on 19th February 2024 and closed for subscription on 22nd February 2024 (both days inclusive). The basis of allotment will be finalized on 23rd February 2024 and the refunds will be initiated on 26th February 2024. In addition, the demat credits are expected to happen on 26th February 2024 and the stock is scheduled to list on 27th 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 26th February 2024 under ISIN Number (INE0QWN01013).

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.

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

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

Disclaimer

Investment/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.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Teerth Gopicon IPO Allotment Status

Building blocks of the Teerth Gopicon Limited Ltd IPO Teerth Gopicon IPO is a fixed price issue of Rs 44.40 crores. The issue comprises entirely a fresh offering of 40 lakh shares. Teerth Gopicon IPO commenced its subscription on April 8, 2024, and concludes today, April 10, 2024. The allotment for the Teerth Gopicon IPO is scheduled to be finalized on Friday, April 12, 2024. The IPO is set to list on NSE SME, with the tentative listing date fixed as Tuesday, April 16, 2024.

DCG Cables & Wires IPO Allotment Status

Building blocks of the DCG Cables & Wires Limited IPO DCG Cables & Wires IPO, a fixed price issue of Rs 49.99 crores, comprises an entirely fresh issue of 49.99 lakh shares. DCG Cables & Wires IPO commenced subscription on April 8, 2024, and concludes today, April 10, 2024. The allotment for DCG Cables & Wires IPO is set to be finalized on Friday, April 12, 2024.

Swing Trading Stocks: Week of 15 April 2024

Swing Trading Stocks for the Week