GP Eco Solutions IPO Subscription Status

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 20th June 2024 - 11:47 am

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GP Eco Solutions IPO - Day-3 Subscription at 856.37 times

As of 7.00 pm on 19th June 2024, out of the 20.652 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), GP Eco Solutions India (GPES Solar) saw bids for 17,685.76 lakh shares. This implies an overall subscription of 856.37X 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 GP Eco Solutions IPO was as under:

QIBs (236.64X)  HNI / NII (1,825.61X) Retail (793.20X)

 

The subscriptions were led by the HNI / NII investors followed by the Retail 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 actually 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 3,27,600 3,27,600 3.08
Anchor Quota 1.00 8,83,200 8,83,200 8.30
QIB Investors 236.64 5,89,200 13,94,25,600 1,310.60
HNIs / NIIs 1,825.61 4,44,000 81,05,68,800 7,619.35
Retail Investors 793.20 10,32,000 81,85,81,200 7,694.66
Total 856.37 20,65,200 1,76,85,75,600 16,624.61

Data Source: NSE

The IPO was open up to June 19, 2024, and as of the close of trading on Wednesday, June 19, 2024, the subscription to the IPO has closed. As of today, the status is updated as of the end of Day-3 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; and that was the case in this IPO also. 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 IPO of GP Eco Solutions India (GPES Solar) is set in the band of ₹90 to ₹94 per share. The issue closed for subscription on 19th June 2024. The credits to the demat account to the extent of shares allotted will happen by the close of 21st June 2024 under ISIN (INE0S7E01015).

GP Eco Solutions IPO subscription Status on Day-2

As of 5.35 pm on 18th June 2024, out of the 20.652 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), GP Eco Solutions India (GPES Solar) saw bids for 5,467.692 lakh shares. This implies an overall subscription of 264.75X 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 GP Eco Solutions IPO was as under:

QIBs (9.48X)  HNI / NII (390.36X) Retail (356.46X)

The subscriptions were led by the HNI / NII investors followed by the Retail 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 3,27,600 3,27,600 3.08
Anchor Quota 1.00 8,83,200 8,83,200 8.30
QIB Investors 9.48 5,89,200 55,83,600 52.49
HNIs / NIIs 390.36 4,44,000 17,33,20,800 1,629.22
Retail Investors 356.46 10,32,000 36,78,64,800 3,457.93
Total 264.75 20,65,200 54,67,69,200 5,139.63

Data Source: NSE

The IPO is open up to June 19, 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 IPO of GP Eco Solutions India (GPES Solar) is set in the band of ₹90 to ₹94 per share. The issue closes for subscription on 19th June 2024. The credits to the demat account to the extent of shares allotted will happen by the close of 21st June 2024 under ISIN (INE0S7E01015).
 

GP Eco Solutions IPO Subscription Status on Day-1

As of 5.10 pm on 14th June 2024, out of the 20.652 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), GP Eco Solutions India (GPES Solar) saw bids for 1,233.55 lakh shares. This implies an overall subscription of 59.73X 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 GP Eco Solutions IPO was as under:

QIBs (2.95X)  HNI / NII (75.05X) Retail (85.56X)

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 3,27,600 3,27,600 3.08
Anchor Quota 1.00 8,83,200 8,83,200 8.30
QIB Investors 2.95 5,89,200 17,40,000 16.36
HNIs / NIIs 75.05 4,44,000 3,33,20,400 313.21
Retail Investors 85.56 10,32,000 8,82,94,800 829.97
Total 59.73 20,65,200 12,33,55,200 1,159.54

Data Source: NSE

The IPO is open up to June 19, 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.

GP Eco Solutions India IPO 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 SS Corporate Securities Ltd as the market maker and assigned a market making inventory of 3,27,600 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.

Investor Category Shares Allocated in the IPO
Market Maker Shares 3,27,600 shares (10.00% of total issue size)
Anchor Portion Allocation 8,83,200 shares (26.96% of total issue size)
QIB Shares Offered 5,89,200 shares (17.99% of total issue size)
NII (HNI) Shares Offered 4,44,000 shares (13.55% of total issue size)
Retail Shares Offered 10,32,000 shares (31.50% of total issue size)
Total Shares Offered 32,76,000 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 13, 2024, the company made an anchor allocation of 8,83,200 shares to anchor investors at a price of ₹94 per share. This includes the par value of ₹10 per share and premium of ₹84 per share. The total size of the anchor allocation was ₹8.30 crore.

The anchor allocation was done across 5 anchor investors at the upper end of the price band at ₹94 per share. The 5 major anchor investors got 100.00% of the total anchor allocation. These 5 major anchor investors included CCV Emerging Opportunities Fund - I (39.54%), Persistent India Growth Fund – Varsu India (24.19%), Finavenue Growth Fund (12.09%), Vikasa India EIF-I Fund (12.09%), and Acintyo Investment Fund (12.09%). These 5 anchor investors got the total anchor allocation in the ratio above.

Out of the total anchor allocation of ₹8.30 crore, a total of 50% of the allocation will have a 1-month lock in up to July 20, 2024 and the balance 50% will have a 3-month lock-in up to September 18, 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 47.95% to 17.99%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About GP Eco Solutions India IPO

The stock of GP Eco Solutions India (GPES Solar) has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the band of ₹90 to ₹94 per share. Being a book built issue, the final price will be discovered within this band. The IPO of GP Eco Solutions India (GPES Solar) 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, GP Eco Solutions India (GPES Solar) will issue a total of 32,76,000 shares (32.76 lakh shares), which at the upper band IPO price of ₹94 per share aggregates to fresh fund raising of ₹30.79 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 32,76,000 shares (32.76 lakh shares) which at the upper band IPO price of ₹94 per share will aggregate to overall IPO size of ₹30.79 crore.
Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 3,27,600 shares as quota for market inventory. SS Corporate Securities 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 Deepak Pandey, Anju Pandey, and Astik Mani Tripathi. The promoter holding in the company currently stands at 86.40%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 62.23%. The fresh issue funds will be used by the company for investing in its subsidiary, Invergy India Private Ltd for purchase of plant & machinery and towards civil construction costs and also to meet the working capital needs. Corporate Capitalventures Private 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 SS Corporate Securities Ltd. The IPO of GP Eco Solutions India (GPES Solar) will be listed on the SME IPO segment of the NSE.

Next Steps in the GP Eco Solutions India (GPES Solar) IPO process

The issue opened for subscription on 14th June 2024 and closes for subscription on 19th June 2024 (both days inclusive). The basis of allotment will be finalized on 20th June 2024 and the refunds will be initiated on 21st June 2024. In addition, the demat credits are expected to also happen on 21st June 2024 and the stock will list on 24th June 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 21st June 2024 under ISIN (INE0S7E01015).

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