Z-Tech India IPO Subscription Status

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 31st May 2024 - 07:49 pm

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Z-Tech India IPO Subscription Status on Day-3

As of 5.30 pm on 31st May 2024, out of the 22.56 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Z-Tech India saw bids for 8,380.188 lakh shares. This implies an overall subscription of 371.46X 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 Z-Tech India IPO was as under:

QIBs(123.10X) HNI / NII (832.72X) Retail (315.59X)

The subscriptions were led by the HNI / NII investors followed by the Retail investors and 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 was the case in this issue also in the case of the HNI / NII bids and the QIB bids in this IPO also. 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 1,70,400 1,70,400 1.87
Anchor Quota 1.00 9,64,800 9,64,800 10.61
QIB Investors 123.10 6,44,400 7,93,26,000 872.59
HNIs / NIIs 832.72 4,83,600 40,27,05,600 4,429.76
Retail Investors 315.59 11,28,000 35,59,87,200 3,915.86
Total 371.46 22,56,000 83,80,18,800 9,218.21

Data Source: NSE

The IPO was open up to May 31, 2024, and it has closed as of the end of trading on Friday. The numbers given above are the final subscription numbers for the IPO. The issue closed for subscription on May 31, 2024 and the basis of allotment will be finalized on June 03, 2024; post which the allotment status can be checked online. Under the new rules, all IPOs have to mandatorily list on the third working day from the closure of the IOP. This applies to the mainboard IPOs as well as to the SME IPOs on the NSE and the BSE.
 

Z-Tech India IPO Subscription Status on Day-2

As of 5.16 pm on 30th May 2024, out of the 22.56 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Z-Tech India saw bids for 1,186.50 lakh shares. This implies an overall subscription of 52.59X 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 IPO of Z-Tech India was as under:

QIBs (7.93X) HNI / NII (50.29X) Retail (79.10X)

The subscriptions were led by the retail investors followed by the HNI / NII investors and 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 1,70,400 1,70,400 1.87
Anchor Quota 1.00 9,64,800 9,64,800 10.61
QIB Investors 7.93 6,44,400 51,08,400 56.19
HNIs / NIIs 50.29 4,83,600 2,43,18,000 267.50
Retail Investors 79.10 11,28,000 8,92,23,600 981.46
Total 52.59 22,56,000 11,86,50,000 1,305.15

Data Source: NSE

The IPO is open up to May 31, 2024, at which point we will know the final subscription status of the IPO. The company had done an anchor allocation of 9.648 lakh shares on May 28, 2024, one working day ahead of the IPO opening. The anchor allocation was done across 5 anchor investors at the upper end of the price band at ₹110 per share. This includes the face value of ₹10 per share and a premium of ₹100 per share. 

The total anchor size was worth ₹10.61 crore. The key allottees in this anchor allocation included Kingsman Wealth Fund PCC - KIF (35.32%), SB Opportunities Fund - I (31.72%), Astorne Capital VCC - Arven (14.05%), Saint Capital Fund (9.45%), and Varsu India Growth Story Scheme – I (9.45%). 

Out of this anchor allocation 50% of the allocation will have a 1-month lock in up to July 03, 2024 and the balance 50% will have a 3-month lock-in up to September 01, 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 47.45% to 19.00%. The issue closes for subscription on May 31, 2024 and the basis of allotment will be done by June 03, 2024; post which the allotment status can be checked online.

Z-Tech India IPO Subscription Status on Day-1

As of 5.15 pm on 29th May 2024, out of the 22.56 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Z-Tech India saw bids for 469.90 lakh shares. This implies an overall subscription of 20.83X 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 IPO of Z-Tech India was as under:

QIBs (7.76X) HNI / NII (20.16X) Retail (28.58X)

The subscriptions were led by the retail investors followed by the HNI / NII investors and 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 1,70,400 1,70,400 1.87
Anchor Quota 1.00 9,64,800 9,64,800 10.61
QIB Investors 7.76 6,44,400 50,00,400 55.00
HNIs / NIIs 20.16 4,83,600 97,51,200 107.26
Retail Investors 28.58 11,28,000 3,22,38,000 354.62
Total 20.83 22,56,000 4,69,89,600 516.89

Data Source: NSE

The IPO is open up to May 31, 2024, at which point we will know the final subscription status of the IPO. The company had done an anchor allocation of 9.648 lakh shares on May 28, 2024, one working day ahead of the IPO opening. The anchor allocation was done across 5 anchor investors at the upper end of the price band at ₹110 per share. This includes the face value of ₹10 per share and a premium of ₹100 per share. 

The total anchor size was worth ₹10.61 crore. The key allottees in this anchor allocation included Kingsman Wealth Fund PCC - KIF (35.32%), SB Opportunities Fund - I (31.72%), Astorne Capital VCC - Arven (14.05%), Saint Capital Fund (9.45%), and Varsu India Growth Story Scheme – I (9.45%). 

Out of this anchor allocation 50% of the allocation will have a 1-month lock in up to July 03, 2024 and the balance 50% will have a 3-month lock-in up to September 01, 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 47.45% to 19.00%.

Z-Tech India – 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 NVS Brokerage Ltd as the market maker and assigned a market making inventory of 1,70,400 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 1,70,400 shares (5.03% of the total issue size)
Anchor Portion Allocation 9,64,800 shares (28.45% of the total issue size)
QIB Shares Offered 6,44,400 shares (19.00% of the total issue size)
NII (HNI) Shares Offered 4,83,600 shares (14.26% of the total issue size)
Retail Shares Offered 11,28,000 shares (33.26% of the total issue size)
Total Shares Offered 33,91,200 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.

About the IPO of Z-Tech India

The stock of Z-Tech India has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹104 to ₹110 per share. Being a book built issue, the final price will be discovered within this band. The IPO of Z-Tech India has only a fresh issue component and no offer for sale (OFS) 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 fresh issue portion of the IPO, Z-Tech India will issue a total of 33,91,200 shares (33.91 lakh shares approximately), which at the upper band IPO price of ₹110 per share aggregates to fresh fund raising of ₹37.30 crore. Since there is no OFS, the fresh issue size will also double as the overall issue. Therefore, the overall IPO size will also comprise of the issue of 33,91,200 shares (33.91 lakh shares approximately) which at the upper band IPO price of ₹110 per share will aggregate to overall IPO size of ₹37.30 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 1,70,400 shares. NVS Brokerage Private Ltd will be the market makers 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 Sanghamitra Borgohain and Terramaya Enterprises Private Ltd. The promoter holding in the company currently stands at 82.65%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 60.75%. The fresh issue funds will be used by the company for meeting their working capital purposes. Narnolia Financial Services Ltd will be the lead manager to the issue, and Maashitla Securities Private Ltd will be the registrar to the issue. The market maker for the issue is NVS Brokerage Private Ltd. The IPO of Z-Tech India will be listed on the SME IPO segment of the NSE.

Next Steps in the Z-Tech India IPO process

The issue opened for subscription on 29th May 2024 and closes for subscription on 31st May 2024 (both days inclusive). The basis of allotment will be finalized on 03rd June 2024 and the refunds will be initiated on 04th June 2024. In addition, the demat credits are expected to also happen on 04th June 2024 and the stock will list on 05th June 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 04th June 2024 under ISIN (INE0ISZ01012).
 

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