Vinyas Innovative Technologies IPO: Closing subscription details
About the Vinyas Innovative Technologies Ltd IPO
The IPO of Vinyas Innovative Technologies 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 book built issue. The price band for the IPO has been fixed between ₹162 and ₹165 per share. The IPO of Vinyas Innovative Technologies Ltd has only a fresh issue component and no offer for sale (OFS) component. As part of the fresh issue portion of the IPO, Vinyas Innovative Technologies Ltd will issue a total of 33,12,800 shares (33.13 lakh shares approximately). At the upper end of the price band at ₹165 per share, the total value of the fresh issue portion aggregates to ₹54.66 crore. Since there is no offer for sale portion, the fresh issue will also be the total size of the issue. As a result, the total issue size of Vinyas Innovative Technologies Ltd at ₹54.66 crore.
The minimum lot size for the IPO investment will be 800 shares. Thus, retail investors can invest a minimum of ₹1,32,000 (800 x ₹165 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 1,600 shares and having a minimum lot value of ₹2,64,000. 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 get diluted post the IPO from 39.87% to 29.37%. The company will use the fresh funds to fund working capital gaps and general corporate expenses. While Sarthi Capital Advisors Private Ltd will be the lead manager to the issue, Skyline Financial Services Private Ltd will be the registrar to the issue. The market maker for the issue will be Gretex Share Broking Ltd.
Final subscription status of Vinyas Innovative Technologies Ltd
Here is the subscription status of the Vinyas Innovative Technologies IPO as at close on 03rd October 2023.
|HNIs / NIIs||95.16||472,000||4,49,16,800||741.13|
As can be seen from the above table, the overall IPO of Vinyas Innovative Technologies Ltd got subscribed 43.24 times. The HNI / NII portion led the stakes with 95.16 times subscription, followed by the QIB portion at 42.74 times subscription. The Retail portion saw the lowest relative oversubscription in the IPO at just 21.27 times. That is a 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, QIBs and for the HNI / NIIs. There was a broad quota designed for each of the segments viz. the QIBs, 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 1,66,400 shares were allocated as market maker portion to Gretex Share Broking 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||9,43,200 shares (28.47%)|
|Market Maker Shares Offered||1,66,400 shares (5.02%)|
|QIB Shares Offered||6,29,600 shares (19.01%)|
|NII (HNI) Shares Offered||4,72,000 shares (14.25%)|
|Retail Shares Offered||11,01,600 shares (33.25%)|
|Total Shares Offered||33,12,800 shares (100.00%)|
As can be seen, from the above table, the company had allocated 9.432 lakh shares or 28.47% of the original issue size to anchor investors. The anchor allotment was done a day ahead of the IPO opening on 26th September 2023 and the entire anchor allocation was spread across 8 anchor investors. The anchor allocation was done at the upper end of the price band at ₹165 per share, which includes share premium of ₹155 per share.
How subscription built up for the IPO of Vinyas Innovative Technologies Ltd
The oversubscription of the IPO was dominated by the HNI / NII category followed by the QIB category and the Retail investors category in that order. The table below captures the day-wise progression of the subscription status of Vinyas Innovative Technologies Ltd IPO.
|Day 1 (Sep 27, 2023)||0.00||0.50||0.24||0.23|
|Day 2 (Sep 28, 2023)||0.00||0.62||11.34||0.37|
|Day 3 (Sep 29, 2023)||8.00||1.33||29.07||3.19|
|Day 4 (Oct 03, 2023)||42.74||95.16||95.49||43.24|
It is clear from the above table that the retail portion, the HNI / NII portion as well as the QIB portion got fully subscribed only on the third day of the IPO. As a result, even the overall IPO got fully subscribed only on the third day of the IPO. The IPO was kept open for a period of 4 days. However, all the 3 categories saw bunching of flows on the fourth and last day of the IPO. The overall IPO was fully subscribed only on the third day of the IPO although most of the traction was seen on the fourth and last day of the IPO i.e., 03rd October 2023.
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 04th October 2023 while the stock is expected to be listed on 06th October 2023.
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