Sahana Systems IPO GMP (Grey Market Premium)

Sahana Systems IPO GMP
Sahana Systems IPO GMP

by Tanushree Jaiswal Last Updated: Jun 12, 2023 - 10:23 am 2.5k Views

Sahana Systems IPO worth ₹32.74 crore comprises entirely of a fresh issue of shares by the company. The price band has been fixed in the range of ₹132 to ₹135. The fresh issue portion entails the issue of 24.25 lakh shares which at the upper end of the price band at ₹135 is worth ₹32.74 crore. Since there is no OFS portion in the IPO, even the overall size of the IPO entails the issue of 24.25 lakh shares, which at the upper price band of ₹135 per share works out to total issue size of ₹32.74 crore.

The stock of Sahana Systems Ltd has a face value of ₹10 and bidders can only bid in minimum lot size of 1,000 share each, entailing a minimum investment of ₹135,000 in the IPO at the upper end of the price band of ₹135 per share. That is also the maximum that a retail investor can bid in the IPO. HNIs, NIIs can bid for minimum of 2 lots of 2,000 shares entailing an investment of ₹270,000. The table below captures the lot sizes permissible.

Application Lots Shares Amount
Retail (Min) 1 1000 ₹1,35,000
Retail (Max) 1 1000 ₹1,35,000
HNI (Min) 2 1000 ₹2,70,000

As per the terms of the offer, 9.48% of the net offer is reserved for the qualified institutional buyers (QIBs), 47.84% of the offer is reserved for the HNI / NII investors and the balance 42.68% is reserved for the retail investors. The table below captures the gist of the allocation break up across different categories of investors.


QIB Shares Offered 2,30,000 shares (9.48%)
NII (HNI) Shares Offered 11,60,000 shares (47.84%)
Retail Shares Offered 10,35,000 shares (42.68%)
Total Shares Offered 24,25,000 shares (100%)

It is a Book Built issue with the price band and the final price will be discovered through book building process. Rikhav Securities Ltd will act as the market maker for the SME IPO of Sahana Systems Ltd. The company has set aside 125,000 shares for the market maker and this market maker quota will be adjusted from the HNI / NII portion allocation in the IPO.

The issue opens for subscription on 31st May 2023 and closes for subscription on 02nd June 2023 (both days inclusive). The basis of allotment will be finalized on 07th June 2023 and the refunds will be initiated on 08th June 2023. In addition, the demat credits are expected to happen on 09th June 2023 and the stock is scheduled to list on 12th June 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The grey market price (GMP) trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. In the case of Sahana Systems Ltd, we already have GMP data for the last 2 days, which should give a reasonable picture of the likely listing.

There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, especially the liquidity conditions in the market. Secondly, the extent of subscription for the IPO has a deep impact on the GMP as it is indicative of investor interest in the stock. GMP can also technically be in negative, which means the stock would list at a discount to the issue price.

There is one small point to remember here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has been observed to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance of the stock would be.

GMP tends to be a good mirror of the real stock story. More than the actual price, it is the GMP trend over time that gives insights about which direction the wind is blowing. Here is a quick GMP summary for Sahana Systems IPO for which data is available.

Date GMP
12-June-2023 ₹21
11-June-2023 ₹22
10-June-2023 ₹22
9-June-2023 ₹20
8-June-2023 ₹16
7-June-2023 ₹40
6-June-2023 ₹32
5-June-2023 ₹20
4-June-2023 ₹5
3-June-2023 ₹5
2-June-2023 ₹9
1-June-2023 ₹10
31-May-2023 ₹11
30-May-2023 ₹10

In the above case, the GMP trend shows that the grey market premium has opened at around ₹10, but now up by ₹21 on the second day on which GMP data is available. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription and also watch the progress, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. For a start, Sahana Systems Ltd has shown good traction in the grey market.

If you consider the upper end of band price of the IPO of Sahana Systems Ltd at ₹135, then the likely listing price is being signalled at around ₹147 per share as per the GMP indicator on 31st May 2023. This is dynamic and keeps changing. One data point to track will be the subscription update on the stock as that would chart the GMP course.

The GMP of ₹12 on the upper end of the book built IPO price of ₹135 indicates a listing premium of a healthy 8.89% for Sahana Systems Ltd over the listing price. That pre-supposes a listing price of approximately ₹147 per share, when Sahana Systems Ltd lists on 12th June 2023. Of course, these are approximations, so you must keep a margin of safety. One needs to observe the trend of GMP closely as that gives the best hints on listing status. Look at the time series trend than on numbers.

Here is a quick background of Sahana Systems Ltd, an SME IPO on the NSE which is opening for subscription on 31st May 2023. Sahana Systems was incorporated in 2020 and is engaged in the business of offering IT-related services. It offers the full gamut of IT related services including web app development, mobile app development, artificial intelligence / machine learning development (AI & ML), Chatbot development, and product prototyping. It also specializes in user interface and in UI design. It caters to user interfaces as well as user experience.

Sahana is a registered start-up as recognized by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry. This entitles the company to a host of privileges including exemption from angel tax. The funds raised through the fresh issue will be used to bankroll its installation of EV charging stations and for meeting working capital requirements.  The issue will be lead managed by Unistone Capital Private Limited and Interactive Financial Services Ltd while Purva Share Registry India Private Ltd will be the registrars to the SME IPO of Sahana Systems Ltd.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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