Kontor Space IPO Closing subscription details
About the Kontor Space Ltd IPO
The IPO of Kontor Space Ltd opened for subscription on 27th 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 fixed price issue, with the IPO price fixed at ₹93 per share. The IPO of Kontor Space Ltd has only a fresh issue component and no offer for sale (OFS) component in the IPO. As part of the fresh issue portion of the IPO, Kontor Space Ltd will issue a total of 16,80,000 shares (16.80 lakh shares). At the fixed price of the IPO price of ₹93 per share, the total value of the fresh issue portion aggregates to ₹15.62 crore. Since there is no offer for sale portion, the fresh issue will also be the total size of the issue. Therefore, the total issue size of Kontor Space Ltd will also entail the issue of 16,80,000 shares (16.80 lakh shares). At the fixed IPO price of ₹93 per share, the total IPO size of Kontor Space Ltd is ₹15.62 crore.
The minimum lot size for the IPO investment will be 1,200 shares. Retail investors can invest a minimum of ₹1,11,600 (1,200 x ₹93 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 2,400 shares and having a minimum lot value of ₹2,23,200. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for. The promoter holding in the company will be diluted post the IPO from 98.20% to 71.50%. The company will use the fresh funds for rental deposits of new co-working spaces and for capex for fit-outs at these new co-working centres. While Srujan Alpha Capital Advisors LLP will be the lead manager to the issue, Cameo Corporate Services Ltd will be the registrar to the issue. The market maker for the issue will be Rikhav Securities Ltd.
Final subscription status of Kontor Space Ltd
Here is the subscription status of the Kontor Space IPO as at close on 03rd October 2023.
|HNI / NIIs||41.87||7,96,800||3,33,62,400||310.27|
As can be seen from the above table, the overall IPO of Kontor Space Ltd got subscribed 70.97 times. The Retail portion led the stakes with 95.49 times subscription, followed by the HNI / NII portion at 41.87 times. There was no separate QIB quota for this IPO. 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 of investors
The issue was open for retail investors, and for the non-retail investors, which predominantly comprises of the HNI / NIIs. There was a broad quota designed for each of the segments viz. 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 86,400 shares were allocated as market maker portion to Rikhav Securities 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||Nil Shares|
|Market Maker Shares Offered||86,400 shares (5.14%)|
|Other Shares Offered||7,96,800 shares (47.43%)|
|Retail Shares Offered||7,96,800 shares (47.43%)|
|Total Shares Offered||16,80,000 shares (100.00%)|
As can be seen, from the above table, the company does not have any QIB quota and there is no anchor placement done ahead of the IPO to the anchor investors. However, the company has allocated 5.14% of the total issue size or 86,400 shares for market maker inventory. The market maker will play a key role in the liquidity management and reduction of basis risk post the issue getting listed on the bourse.
How subscription built up for the IPO of Kontor Space Ltd
The oversubscription of the IPO was dominated by the Retail category followed by the HNI / NIIs category of investors in that order. The table below captures the day-wise progression of the subscription status of Kontor Space Ltd IPO.
|Day 1 (Sep 27, 2023)||0.65||5.56||3.11|
|Day 2 (Sep 28, 2023)||1.46||11.34||6.40|
|Day 3 (Sep 29, 2023)||4.40||29.07||16.75|
|Day 4 (Oct 03, 2023)||41.87||95.49||70.97|
It is clear from the above table that while the retail portion got fully subscribed on the first day of the IPO itself, the HNI / NII portion got fully subscribed only on the second day of the IPO. The IPO was kept open for 4 days and the overall IPO go subscribed on the first day of the IPO itself. 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.
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 in the NSE-SME segment. This is the segment for smaller companies on the NSE, as distinct from the mainboard IPO listings.
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