GSM Foils IPO Subscription Status

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 28th May 2024 - 06:39 pm

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GSM Foils - IPO subscription Status on Day-3

As of 5.30 pm on 28th May 2024, out of the 32.64 lakh shares on offer in the IPO (excluding the market maker portion), GSM Foils saw bids for 8,268.32 lakh shares. This implies an overall subscription of 253.32X at a macro level as of 5.30 pm on May 28, 2024. The granular break-up of subscriptions as of the close of the first day of the IPO of GSM Foils was as under:

QIBs (Not Applicable)

HNI / NII (259.62X)

Retail (247.01X)

The subscriptions were led by the HNI / NII investors followed closely by the Retail investors in that order. Since there is no QIB quota in this IPO, the NII / HNI typically gathered 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. 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. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Investor
Category

Subscription
(times)

Shares
Offered

Shares
bid for

Total Amount
(₹ Crore)

Market Makers

1.00

1,76,000

1,76,000

0.56

HNI / NII Investors

259.62

16,32,000

42,37,04,000

1,355.85

Retail Investors

247.01

16,32,000

40,31,28,000

1,290.01

Total

253.32

32,64,000

82,68,32,000

2,645.86

Data Source: NSE

The IPO has closed as of the close of May 28, 2024, and the table above captures the final subscription for the IPO. The IPO allotment will be finalized on May 29, 2024, post which the allotment status will be available for investors to check out.

GSM Foils - IPO subscription Status on Day-2

As of 5.05 pm on 27th May 2024, out of the 32.64 lakh shares on offer in the IPO (excluding the market maker portion), GSM Foils saw bids for 2,194.76 lakh shares. This implies an overall subscription of 67.24X at a macro level. The granular break-up of subscriptions as of the close of the first day of the IPO of GSM Foils was as under:

QIBs (Not Applicable)

HNI / NII (30.38X)

Retail (104.10X)

The subscriptions were led by the retail investors followed by the HNI / NII investors in that order. Since there is no QIB quota in this IPO, 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. 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. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Investor
Category

Subscription
(times)

Shares
Offered

Shares
bid for

Total Amount
(₹ in Crore)

HNIs / NIIs

30.38

16,32,000

4,95,84,000

158.67

Retail Investors

104.10

16,32,000

16,98,92,000

543.65

Total

67.24

32,64,000

21,94,76,000

702.32

Data Source: NSE

The IPO is open up to May 28, 2024, at which point we will know the final subscription status of the IPO.

GSM Foils - IPO subscription Status on Day-1

As of 5.55 pm on 24th May 2024, out of the 32.64 lakh shares on offer in the IPO (excluding the market maker portion), GSM Foils saw bids for 572.08 lakh shares. This implies an overall subscription of 17.53X at a macro level. The granular break-up of subscriptions as of the close of the first day of the GSM Foils IPO was as under:

QIBs (Not Applicable)

HNI / NII (5.08X)

Retail (29.97X)

The subscriptions were led by the retail investors followed by the HNI / NII investors in that order. Since there is no QIB quota in this IPO, 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. 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. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Investor
Category

Subscription
(times)

Shares
Offered

Shares
bid for

Total Amount
(₹ in Crore)

HNIs / NIIs

5.08

16,32,000

82,96,000

26.55

Retail Investors

29.97

16,32,000

4,89,12,000

156.52

Total

17.53

32,64,000

5,72,08,000

183.07

Data Source: NSE

The IPO is open up to May 28, 2024, at which point we will know the final subscription status of the IPO.

GSM Foils IPO – share allocation across categories

The table below captures the break-up of the overall share allocation to retail investors and to the HNI / NII investors. There is no QIB quota in this IPO, and 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.

Investor Category

Shares Allocated in the IPO

Market Maker Shares

1,76,000 shares (5.12% of the total issue size)

QIB Shares Offered

There is no QIB allocation in the IPO

NII (HNI) Shares Offered

16,32,000 shares (47.44% of the total issue size)

Retail Shares Offered

16,32,000 shares (47.44% of the total issue size)

Total Shares Offered

34,40,000 shares (100.00% of total issue size)

Data Source: Company RHP

There is no QIB allocation in this IPO and hence there is no anchor portion carved out. The issue size, net of the market maker quota, has been divided equally between the retail investors and the HNI / NII investors.

About GSM Foils IPO

The stock of GSM Foils has a face value of ₹10 per share and it is a fixed price issue. The price for the fixed price issue is set at ₹32 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of GSM Foils 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, GSM Foils will issue a total of 34,40,000 shares (34.40 lakh shares), which at the fixed IPO price of ₹32 per share aggregates to fresh fund raising of ₹11.01 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 34,40,000 shares (34.40 lakh shares) which at the fixed IPO price of ₹32 per share will aggregate to overall IPO size of ₹11.01 crore.

Read more about GSM Foils IPO

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 1,76,000 shares. Shreni Shares Ltd will be the market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The company has been promoted by Sagar Girish Bhanushali and Mohan Singh Parmar. The promoter holding in the company currently stands at 99.99%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 73.14%. The fresh issue funds will be used by the company for funding capital expenditure for purchase of plant and machinery, as well as to fill the working capital gaps. A small part will also be used for general corporate expenses. Shreni Shares 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 Shreni Shares Ltd. The IPO of GSM Foils will be listed on the SME IPO segment of the NSE.

Next Steps in the GSM Foils IPO process

The issue opened for subscription on 24th May 2024 and closes for subscription on 28th May 2024 (both days inclusive). The basis of allotment will be finalized on 29th May 2024 and the refunds will be initiated on 30th May 2024. In addition, the demat credits are expected to also happen on 30th May 2024 and the stock will list on 31st May 2024 on the NSE SME IPO segment. GSM Foils will test the appetite for aluminium packaging stocks in India. The credits to the demat account to the extent of shares allotted will happen by the close of 30th May 2024 under ISIN (INE0SQY01018).

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