Petro Carbon IPO Subscription Status

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 28th June 2024 - 11:20 am

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Petro Carbon IPO Subscription Status on Day-3 at 92.16 times

As of 7.03 pm on 27th June 2024, out of the 43.32 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Petro Carbon and Chemicals saw bids for 3,992.22 lakh shares. This implies an overall subscription of 92.16X 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 Petro Carbon and Chemicals IPO was as follows:

QIBs (94.49X) HNI / NII (130.40X) Retail (74.43X)

 

The subscriptions were led by the HNI / NII investors, followed by the QIB investors, and then by the Retail 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 4,30,400 4,30,400 7.36
Anchor Quota 1.00 18,55,200 18,55,200 31.72
QIB Investors 94.49 12,36,800 11,68,69,600 1,998.47
HNIs / NIIs 130.40 9,28,800 12,11,12,800 2,071.03
Retail Investors 74.43 21,66,400 16,12,40,000 2,757.20
Total 92.16 43,32,000 39,92,22,400 6,826.70

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 above represents the final subscription numbers for 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 Petro Carbon and Chemicals 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 ₹162 per share to ₹171 per share. The IPO of Petro Carbon and Chemicals has only an offer for sale (OFS) component and no fresh issue 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 (INE998U01015).

 

Petro Carbon and Chemicals IPO Subscription Status on Day-2 at 7.73 times

As of 5.22 pm on 26th June 2024, out of the 43.32 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Petro Carbon and Chemicals saw bids for 335.03 lakh shares. This implies an overall subscription of 7.73X 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 Petro Carbon and Chemicals IPO was as under:

QIBs (0.15X) HNI / NII (7.62X) Retail (12.11X)

 

Investor Category Subscription (times) Shares Offered Shares Bid For Total Amount (₹ in Crore)
Market Maker 1.00 4,30,400 4,30,400 7.36
Anchor Quota 1.00 18,55,200 18,55,200 31.72
QIB Investors 0.15 12,36,800 1,91,200 3.27
HNIs / NIIs 7.62 9,28,800 70,76,000 121.00
Retail Investors 12.11 21,66,400 2,62,36,000 448.64
Total 7.73 43,32,000 3,35,03,200 572.90

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 Petro Carbon and Chemicals 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 ₹162 per share to ₹171 per share. The IPO of Petro Carbon and Chemicals has only an offer for sale (OFS) component and no fresh issue portion. The issue opened closes 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 (INE998U01015).

Petro Carbon and Chemicals IPO - Day-1 Subscription at 2.01 times

As of 5.10 pm on 25th June 2024, out of the 43.32 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Petro Carbon and Chemicals saw bids for 87.264 lakh shares. This implies an overall subscription of 2.01X 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 Petro Carbon and Chemicals IPO was as under:

QIBs (0.15X) HNI / NII (2.75X) Retail (2.77X)

 

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 4,30,400 4,30,400 7.36
Anchor Quota 1.00 18,55,200 18,55,200 31.72
QIB Investors 0.15 12,36,800 1,80,000 3.08
HNIs / NIIs 2.75 9,28,800 25,56,000 43.71
Retail Investors 2.77 21,66,400 59,90,400 102.44
Total 2.01 43,32,000 87,26,400 149.22

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.

Petro Carbon and Chemicals – 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 Giriraj Stock Broking Private Ltd as the market maker and assigned a market making inventory of 4,30,400 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 4,30,400 shares (6.50% of total issue size)
Anchor Allocation Quota 18,55,200 shares (28.03% of total issue size)
QIB Shares Offered 12,36,800 shares (18.69% of total issue size)
NII (HNI) Shares Offered 9,28,800 shares (14.04% of total issue size)
Retail Shares Offered 21,66,400 shares (32.74% of total issue size)
Total Shares Offered 66,17,600 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 18,55,200 shares to anchor investors at the upper band price of ₹171 per share. This included the par value of ₹10 per share and premium of ₹161 per share. The total size of the anchor allocation was ₹31.72 crore.

The anchor allocation was done across 5 anchor investors at the upper end of the price band at ₹171 per share. These 5 major anchor investors included Narantak Dealcomm Ltd (52.61%), Silver Stride India Global Fund (37.82%), Minerva Ventures Fund (3.19%), Forbes EMF (3.19%) and Santosh Industries Ltd (3.19%). These 5 anchor investors accounted for 100% of the anchor allocation for the issue.

Out of the total anchor allocation of ₹31.72 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 26, 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 46.74% to 18.71%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About Petro Carbon and Chemicals IPO

The stock of Petro Carbon and Chemicals 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 ₹162 per share to ₹171 per share. Being a book built IPO, the final price discovery will happen in the above price band only. The IPO of Petro Carbon and Chemicals has only an offer for sale (OFS) component and no fresh issue 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 offer for sale (OFS) portion of the IPO, Petro Carbon and Chemicals will sell / offer a total of 66,17,600 shares (66.176 lakh shares), which at the upper band IPO price of ₹171 per share aggregates to an OFS size of ₹113.16 crore. The entire OFS size of 66.176 shares is being offered by the promoter shareholders. Since there is no fresh issue at all, the OFS will also double as the overall issue. Therefore, the overall IPO size will also comprise of the sale / offer of 66,17,600 shares (66.176 lakh shares) which at the upper band IPO price of ₹171 per share aggregates to overall IPO size of ₹113.16 crore.

Read more about Petro Carbon and Chemicals IPO

Like every SME IPO, this issue also has a market making portion. Giriraj Stock Broking Private Ltd will be the market maker to the issue and the market maker quota will be 4,30,400 shares. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs. The company has been promoted by Kishor Kumar Atha, Dilip Kumar Atha, Gaurav Atha, Vishal Atha, and Bharat Atha. 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 73.21%, since promoters are offering  The entire issue is an offer for sale and hence there is no fresh funds coming into the company. Hence, the question of utilization of funds does not arise. GYR Capital Advisors 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 yet to be announced by the company. The IPO of Petro Carbon and Chemicals will be listed on the SME IPO segment of the NSE.

Next Steps in the Petro Carbon and Chemicals 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 (INE998U01015).

 

Check Petro Carbon IPO allotment status

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