Divine Power IPO Subscription Status

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 28th June 2024 - 11:16 am

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Divine Power Energy IPO Subscription Status on Day-3 at 394.17 times

As of 7.01 pm on 27th June 2024, out of the 42.342 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Divine Power Energy saw bids for 16,690.02 lakh shares. This implies an overall subscription of 394.17X at a macro level at the close of Day-3 of the IPO. The granular break-up of subscriptions as of the close of Day-3 of the IPO of Divine Power Energy was as follows:

QIBs (135.84X) HNI / NII (474.32X) Retail (508.69X)

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that was the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Investor Category Subscription (times) Shares Offered Shares Bid For Total Amount (₹ in Crore)
Market Maker 1.00 2,88,000 2,88,000 1.15
Anchor Quota 1.00 16,20,000 16,20,000 6.48
QIB Investors 135.84 12,17,100 16,53,36,000 661.34
HNIs / NIIs 474.32 9,05,134 42,93,21,000 1,717.28
Retail Investors 508.69 21,11,978 1,07,43,45,000 4,297.38
Total 394.17 42,34,212 1,66,90,02,000 6,676.01

Data Source: NSE

The IPO is open up to June 27, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is updated as of the end of Day-3 of the IPO. The IPO has closed for subscription and the table represents the final subscription numbers for the IPO as of 7.00 pm when the final UPI data closes. 

The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

The stock of Divine Power Energy has a face value of ₹10 per share and it is a book built issue. The book building price band for the IPO has been set in the range of ₹36 per share to ₹40 per share. The IPO of Divine Power Energy has only a fresh issue component and no offer for sale (OFS) portion. The issue closed for subscription on 27th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 01st July 2024 under ISIN (INE0SCO01019).

Divine Power Energy - IPO Subscription Status on Day-2

As of 5.21 pm on 26th June 2024, out of the 42.342 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Divine Power Energy saw bids for 2,738.169 lakh shares. This implies an overall subscription of 64.67X at a macro level at the close of Day-2 of the IPO. The granular break-up of subscriptions as of the close of Day-2 of the Divine Power Energy IPO was as under:

QIBs (0.14X) HNI / NII (63.07X) Retail (102.54X)

 

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Investor Category Subscription (times) Shares Offered Shares Bid For Total Amount (₹ in Crore)
Market Maker 1.00 2,88,000 2,88,000 1.15
Anchor Quota 1.00 16,20,000 16,20,000 6.48
QIB Investors 0.14 12,17,100 1,71,000 0.68
HNIs / NIIs 63.07 9,05,134 5,70,90,000 228.36
Retail Investors 102.54 21,11,978 21,65,58,000 866.23
Total 64.67 42,34,212 27,38,19,000 1,095.28

Data Source: NSE

The IPO is open up to June 27, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-2 of the IPO. The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

The stock of Divine Power Energy has a face value of ₹10 per share and it is a book built issue. The book building price band for the IPO has been set in the range of ₹36 per share to ₹40 per share. The IPO of Divine Power Energy has only a fresh issue component and no offer for sale (OFS) portion. The issue opened for subscription on 25th June 2024 and closes for subscription on 27th June 2024 (both days inclusive). The basis of allotment will be finalized on 28th June 2024 and the refunds will be initiated on 01st July 2024. In addition, the demat credits are expected to also happen on 01st July 2024 and the stock will list on 02nd July 2024 on the NSE SME IPO segment. The credits to the demat account to the extent of shares allotted will happen by the close of 01st July 2024 under ISIN (INE0SCO01019).

Divine Power Energy IPO - Day-1 Subscription at 14.37 times

As of 5.08 pm on 25th June 2024, out of the 42.342 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Divine Power Energy saw bids for 608.28 lakh shares. This implies an overall subscription of 14.37X at a macro level at the close of Day-1 of the IPO. The granular break-up of subscriptions as of the close of Day-1 of the Divine Power Energy IPO was as under:

QIBs (0.06X) HNI / NII (15.36X) Retail (22.18X)

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Investor Category Subscription (times) Shares Offered Shares Bid For Total Amount (₹ in Crore)
Market Maker 1.00 2,88,000 2,88,000 1.15
Anchor Quota 1.00 16,20,000 16,20,000 6.48
QIB Investors 0.06 12,17,100 78,000 0.31
HNI / NII Investors 15.36 9,05,134 1,39,02,000 55.61
Retail Investors 22.18 21,11,978 4,68,48,000 187.39
Total 14.37 42,34,212 6,08,28,000 243.31

Data Source: NSE

The IPO is open up to June 26, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-1 of the IPO. The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

Divine Power Energy – Share Allocation Across Categories

The table below captures the break-up of the overall share allocation to QIBs, retail investors and to the HNI / NII investors. The anchor allotment is carved out of the QIB quota and the QIB quota is reduced accordingly. The market maker allocation is the inventory that will be used by the market maker to provide liquidity in the counter post listing, to keep the bid-ask spreads low and reduce the risks of trading in the stock. The company has appointed Nikunj Stock Brokers Ltd as the market maker and assigned a market making inventory of 2,88,000 shares to them. The market maker will use this inventory to offer buy and sell quotes to keep the counter liquid and reduce the basis risk on the stock post listing. However, this could differ marginally from the final allocation percentages that is captured in the subscription analysis.

Investor Category Shares Allocated in the IPO
Market Maker Shares 2,88,000 shares (4.69% of total issue size)
Anchor Allocation Quota 16,20,000 shares (26.37% of total issue size)
QIB Shares Offered 12,17,110 shares (19.82% of total issue size)
NII (HNI) Shares Offered 9,05,134 shares (14.74% of total issue size)
Retail Shares Offered 21,11,978 shares (34.38% of total issue size)
Total Shares Offered 61,42,222 shares (100.00% of total issue size)

Data Source: Company RHP

The issue size, net of the market maker quota, has been divided between the QIB investors, retail investors and the HNI / NII investors. On June 24, 2024, the company made an anchor allocation of 16,20,000 shares to anchor investors at the upper band price of ₹40 per share. This included the par value of ₹10 per share and premium of ₹30 per share. The total size of the anchor allocation was ₹6.48 crore.

The anchor allocation was done across 5 anchor investors at the upper end of the price band at ₹40 per share. These 5 major anchor investors included Imvesta Growth Scheme (31.67%), Saint Capital Fund (21.65%), Zinnia Global Fund – Nolaya (15.56%), Craft Emerging Market Fund (15.56%), and India Ahead Venture Fund (15.56%). These 5 anchor investors allotted shares in the pre-IPO anchor bidding accounted for 100% of the anchor allocation.
Out of the total anchor allocation of ₹6.48 crore, a total of 50% of the allocation will have a 1-month lock in up to July 28, 2024 and the balance 50% will have a 3-month lock-in up to September 27, 2024. The anchor portion was carved out of the QIB portion, as a result of which the QIB quota available in the IPO was reduced from 47.47% to 19.00%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About the Divine Power Energy IPO

The stock of Divine Power Energy has a face value of ₹10 per share and it is a book built issue. The book building price band for the IPO has been set in the range of ₹36 per share to ₹40 per share. Being a book built IPO, the final price discovery will happen in the above price band only. The IPO of Divine Power Energy has only a fresh issue component and no offer for sale (OFS) portion. While the fresh issue portion is EPS dilutive and equity dilutive, the OFS is just a transfer of ownership and  hence is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Divine Power Energy will issue a total of 56,90,000 shares (56.90 lakh shares), which at the upper band IPO price of ₹40 per share aggregates to fresh fund raising of ₹22.76 crore. Since there is no OFS, the fresh issue size will also double as the overall issue. Therefore, the overall IPO size will also comprise of the issue of 56,90,000 shares (56.90 lakh shares) which at the upper band IPO price of ₹40 per share aggregates to overall IPO size of ₹22.76 crore.

Read more about Divine Power Energy IPO 

Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 2,88,000 shares as quota for market inventory. Nikunj Stock Brokers Ltd has already been appointed as the market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs. The company has been promoted by Rajesh Giri, Vikas Talwar, and Dali Giri. The promoter holding in the company currently stands at 100.00%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 73.50%. The fresh issue funds will be used by the company for meeting the working capital requirements of the ongoing business. A small part of the IPO proceeds has also be set aside for general corporate purposes. Khambatta Securities 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 Nikunj Stock Brokers Ltd. The IPO of Divine Power Energy will be listed on the SME IPO segment of the NSE.

Next Steps in the Divine Power Energy IPO process

The issue opened for subscription on 25th June 2024 and closes for subscription on 27th June 2024 (both days inclusive). The basis of allotment will be finalized on 28th June 2024 and the refunds will be initiated on 01st July 2024. In addition, the demat credits are expected to also happen on 01st July 2024 and the stock will list on 02nd July 2024 on the NSE SME IPO segment. The credits to the demat account to the extent of shares allotted will happen by the close of 28th June 2024 under ISIN (INE0SCO01019).

 

Check Divine Power IPO allotment status

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