Goyal Salt IPO: Closing subscription details
About the Goyal Salt Ltd IPO
The issue opened for subscription on 26th September 2023 and closed for subscription on 03rd October 2023; both days inclusive. The company has a face value of ₹10 per share and it is a book built issue. The price band for the book built IPO has been fixed in the range of ₹36 to ₹38 per share. The IPO of Goyal Salt Ltd has a fresh issue component but no offer for sale (OFS) portion. As part of the fresh issue portion of the IPO, Goyal Salt Ltd will issue a total of 49,02,000 shares (49.02 lakh shares), which at the IPO price upper band of ₹38 per share aggregates to a total fund raising of ₹18.63 crore. Since, there is no offer for sale portion, the fresh issue size will also be the total size of the IPO. Therefore, the total issue size of Goyal Salt Ltd will also entail the issue of 49,02,000 shares (49.02 lakh shares), which at the upper end of the IPO price band of ₹38 per share aggregates to ₹18.63 crore.
The minimum lot size for the IPO investment will be 3,000 shares. Thus, retail investors can invest a minimum of ₹114,000 (3,000 x ₹38 per share) in the IPO. That is also the maximum that the retail investors can invest in the IPO. HNI / NII investors can invest a minimum of 2 lots comprising of 6,000 shares and having a minimum lot value of ₹228,000. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for. The issue is lead managed by Holani Consultants Private Ltd and the registrar to the issue is Bigshare Services Private Ltd.
Final subscription status of Goyal Salt Ltd
Here is the subscription status of the Goyal Salt IPO as at close on 03rd October 2023.
|HNI / NIIs||382.45||7,29,000||27,88,08,000||1,059.47|
As can be seen from the above table, the overall IPO of Goyal Salt Ltd got subscribed 294.61 times. The HNI / NII portion led the stakes with 382.45 times subscription, followed by the Retail portion at 377.97 times and the QIBs at 67.20 times. That is a very good response to an SME IPO, especially if you consider the median subscriptions that similar other SME IPOs have got in the past.
Allocation quota for various categories
The issue was open for retail investors, QIBs and for the HNI / NIIs. There was a broad quota designed for each of the segments viz. the QIBs, the retail and the HNI NII. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO. A total of 2,46,000 shares were allocated as market maker portion to Holani Consultants Private Ltd, which will act as a market maker to provide bid-ask liquidity on the counter post listing. Market maker action not only improves liquidity in the counter but also reduces the basis risk.
|Investor Category||Shares Offered|
|Anchor Investor Shares Offered||13,17,000 shares (27.37%)|
|Market Maker Shares Offered||2,46,000 shares (5.11%)|
|QIB Shares Offered||8,82,000 shares (18.33%)|
|NII (HNI) Shares Offered||7,29,000 shares (15.15%)|
|Retail Shares Offered||16,38,000 shares (34.04%)|
|Total Shares Offered||48,12,000 shares (100.00%)|
As can be seen, from the above table, the company had allocated 13.17 lakh shares or 27.37% of the original issue size to anchor investors. The anchor allotment was done a day ahead of the IPO opening on 25th September 2023 and the entire anchor allocation was spread across 2 anchor investors only. The anchor allocation was done at the upper end of the price band at ₹38 per share, which includes share premium of ₹10 per share.
How subscription built up for the IPO of Goyal Salt Ltd
The oversubscription of the IPO was dominated by the HNI / NII category followed by the Retail and the QIB investors in that order. The table below captures the day-wise progression of the subscription status of Goyal Salt Ltd IPO.
|Day 1 (Sep 26, 2023)||0.01||6.80||14.25||8.71|
|Day 2 (Sep 27, 2023)||0.08||26.75||53.95||33.22|
|Day 3 (Sep 28, 2023)||4.24||43.57||101.31||62.00|
|Day 4 (Sep 29, 2023)||9.62||85.80||184.47||114.87|
|Day 5 (Oct 03, 2023)||67.20||382.45||377.97||294.61|
It is clear from the above table that while the retail portion and the HNI / NII portion got fully subscribed on the first day of the IPO itself, the QIB portion got fully subscribed only on the third day of the IPO. However, all the 3 categories saw bunching of flows on the last day of the IPO. The overall IPO was also fully subscribed on the first day itself although most of the traction was seen on the last day. The IPO was kept open for 5 full days.
All the 3 categories of investors viz., HNIs / NIIs, retail and QIB categories saw good traction and build-up of interest on the last day of the IPO. Post the IPO listing, the market maker will offer two way quotes on the stock, using the inventory of shares, and ensure that investors do not have to worry about liquidity and basis risk. The basis of allotment will be finalized on 05th October 2023 while the stock is expected to be listed on 10th October 2023.
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