United Cotfab IPO Subscription Status

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 20th June 2024 - 11:42 am

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United Cotfab (BSE-SME IPO) - Day-4 Subscription at 107.22 times

As of 7.00 pm on 19th June 2024, out of the 49.24 lakh shares on offer in the BSE SME IPO (excluding the market maker portion and the anchor allocation done), United Cotfab saw bids for 5,279.30 lakh shares. This implies an overall subscription of 107.22X at a macro level at the close of Day-4 of the IPO. The granular break-up of subscriptions as of the close of Day-4 of the United Cotfab IPO was as under:

QIBs (Not Applicable) HNI / NII (137.21X) Retail (77.22X)

The subscriptions were led by the HNI / NII investors followed by the Retail investors. There is no dedicated QIB allocation in this issue, and these bids if any, are clubbed under the non-institutional HNI / NII portion only. The NII / HNI bids 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 ratio calculation excludes anchor portion (if any) and also the market making portion in the BSE SME IPO.

Investor Category Subscription (times) Shares Offered Shares bid for Total Amount (₹ in Crore)
Market Maker 1.00 2,60,000 2,60,000 1.82
HNIs / NIIs 137.21 24,62,000 33,78,16,000 2,364.71
Retail Investors 77.22 24,62,000 19,01,14,000 1,330.80
Total 107.22 49,24,000 52,79,30,000 3,695.51

Data Source: BSE

The IPO was open up to June 19, 2024, and it has closed for subscription as of the close of trading on Wednesday June 19, 2024. As of today, the status is fully updated as of the end of Day-4 of the IPO. The IPO of United Cotfab was open for 4 days. 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 here too. The market maker portion and anchor quota (if any) are excluded for the purpose of calculating the number of times the IPO was subscribed; to get a realistic picture of the IPO subscription story. The issue closed for subscription on 19th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 21st June 2024 under ISIN (INE0S0I01011).

United Cotfab IPO subscription Status on Day-3

As of 5.30 pm on 18th June 2024, out of the 49.24 lakh shares on offer in the BSE SME IPO (excluding the market maker portion and the anchor allocation done), United Cotfab saw bids for 1,167.56 lakh shares. This implies an overall subscription of 23.71X 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 United Cotfab IPO was as under:

QIBs (Not Applicable) HNI / NII (15.38X) Retail (32.04X)

The subscriptions were led by the retail investors followed by the HNI / NII investors. There is no dedicated QIB allocation in this issue, and these bids if any, are clubbed under the non-institutional HNI / NII portion only. The NII / HNI bids 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 ratio calculation excludes anchor portion (if any) and also the market making portion in the BSE SME IPO.
Investor 

Category Subscription (times) Shares Offered Shares Bid For Total Amount (₹ in Crore)
Market Maker 1.00 2,60,000 2,60,000 1.82
HNIs / NIIs 15.38 24,62,000 3,78,70,000 265.09
Retail Investors 32.04 24,62,000 7,88,86,000 552.20
Total 23.71 49,24,000 11,67,56,000 817.29

Data Source: BSE

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-3 of the IPO. The IPO of United Cotfab is open for 4 days. 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 (if any) are excluded for the purpose of calculating the number of times the IPO was subscribed; to get a realistic picture of the IPO subscription story. The issue closes for subscription on 19th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 21st June 2024 under ISIN (INE0S0I01011).
 

United Cotfab IPO subscription Status on Day-2

As of 5.10 pm on 14th June 2024, out of the 49.24 lakh shares on offer in the BSE SME IPO (excluding the market maker portion and the anchor allocation done), United Cotfab saw bids for 430.04 lakh shares. This implies an overall subscription of 8.73X 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 United Cotfab IPO was as under:

QIBs (Not Applicable) HNI / NII (4.56X) Retail (12.91X)

The subscriptions were led by the retail investors followed by the HNI / NII investors. There is no dedicated QIB allocation in this issue, and these bids if any, are clubbed under the non-institutional HNI / NII portion only. The NII / HNI bids 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 ratio calculation excludes anchor portion (if any) and also the market making portion in the BSE SME IPO.

Investor Category Subscription (times) Shares Offered Shares bid for Total Amount (₹ in Crore)
Market Maker 1.00 2,60,000 2,60,000 1.82
HNIs / NIIs 4.56 24,62,000 1,12,20,000 78.54
Retail Investors 12.91 24,62,000 3,17,84,000 222.49
Total 8.73 49,24,000 4,30,04,000 301.03

Data Source: BSE

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 (if any) are excluded for the purpose of calculating the number of times the IPO was subscribed; to get a realistic picture of the IPO subscription story. The issue closes for subscription on 19th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 21st June 2024 under ISIN (INE0S0I01011).

 

United Cotfab - IPO subscription Status on Day-1

As of 5.30 pm on 13th June 2024, out of the 49.24 lakh shares on offer in the BSE SME IPO (excluding the market maker portion and the anchor allocation done), United Cotfab saw bids for 145.40 lakh shares. This implies an overall subscription of 2.95X 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 United Cotfab IPO was as under:

QIBs (Not Applicable) HNI / NII (1.32X) Retail (4.59X)

The subscriptions were led by the retail investors followed by the HNI / NII investors. There is no dedicated QIB allocation in this issue. The NII / HNI bids 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 ratio calculation excludes anchor portion (if any) and also the market making portion in the BSE SME IPO.

Investor Category Subscription (times) Shares Offered Shares bid for Total Amount (₹ in Crore)
Market Maker 1.00 2,60,000 2,60,000 1.82
HNIs / NIIs 1.32 24,62,000 32,48,000 22.74
Retail Investors 4.59 24,62,000 1,12,92,000 79.04
Total 2.95 49,24,000 1,45,40,000 101.78

Data Source: BSE

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 (if any) are excluded for the purpose of calculating the number of times the IPO was subscribed; to get a realistic picture of the IPO subscription story.

United Cotfab 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. The anchor allotment is carved out of the QIB quota (if any) 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 Spread X Securities Private Ltd as the market maker and assigned a market making inventory of 2,60,000 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 2,60,000 shares (5.02% of the total issue size)
QIB Shares Offered There is no QIB allocation in the IPO
NII (HNI) Shares Offered 24,62,000 shares (47.49% of the total issue size)
Retail Shares Offered 24,62,000 shares (47.49% of the total issue size)
Total Shares Offered 51,84,000 shares (100.00% of total issue size)

Data Source: Company RHP

In the above IPO of United Cotfab, there is no dedicated QIB allocation in the IPO. The anchor allocation to the anchor investors is normally carved out of this QIB allocation and hence the company has not done any anchor allocation in the IPO. Normally, the anchor is done to institutional investors, which gives confidence and assurance to the retail shareholders about the institutional interest in the stock The anchor allocation is normally adjusted and deducted from the QIB quota and only the net number of shares is available for public issue under the QIB portion. 
However, in this case, there is neither any QIB quota, nor any anchor allocation to investors ahead of the IPO. Normally, the anchor portion bidding is done on the day before the IPO opens and such anchor investments are subjected to lock in at two levels. Half the anchor allocation is locked in for 30 days while the balance anchor allocation shares are locked in for a period of 90 days. The allocation of market maker inventory of 5.02% is outside the anchor portion. The market making portion is more towards ensuring liquidity post listing and ensuring low basis spreads on the stock.

About the IPO of United Cotfab

The stock of United Cotfab 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 ₹70 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of United Cotfab has only a fresh issue component with no offer for sale (OFS) component in the . While the fresh issue portion is EPS dilutive and equity dilutive, OFS is just a transfer of ownership and  hence not EPS or equity dilutive. As part of the fresh issue portion of the IPO, United Cotfab will issue a total of 51,84,000 shares (51.84 lakh shares), which at the fixed IPO price of ₹70 per share aggregates to fresh fund raising of ₹36.29 crore. Since there is no offer for sale, the fresh issue portion will also double up as the overall issue size. As a result, the overall IPO size will also comprise of the issue of 51,84,000 shares (51.84 lakh shares) which at the fixed IPO price of ₹70 per share will aggregate to overall IPO size of ₹36.29 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,60,000 shares. Spread X Securities Private Ltd will be the market maker 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 Nirmalkumar Mangalchand Mittal and Gagan Nirmalkumar Mittal. The promoter holding in the company currently stands at 100.00%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 69.84%. The fresh issue funds will be used by the company towards funding the working capital gaps in the regular operations of the company. Beeline Capital Advisors Private Ltd will be the lead manager to the issue, and Purva Share Registry India Private Ltd will be the registrar to the issue. The market maker for the issue is Spread X Securities Private Ltd. The IPO of United Cotfab will be listed on the SME IPO segment of the BSE.

Next Steps in the United Cotfab IPO process

The issue opened for subscription on 13th 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 BSE 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 (INE0S0I01011).

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