IPO Subscription Status: The following table contains the latest IPO Subscription Status Data for upcoming IPOs. We update data from Issue Opening to Issue Closing Date. Check particular company Day by Day IPO Subscription status by clicking on the company name below.
IPO Subscription Status:
|Company||Issue Close Date||QIB(x)||NII(x)||Retail(x)||Employee(x)||Others(x)||Total(x)|
|Anand Rathi Wealth Limited||6 Dec. 2021||2.50||25.42||7.76||1.32||9.78|
|Tega Industries IPO||3 Dec. 2021||215.45||666.19||29.44||219.04|
|Star Health IPO||2 Dec. 2021||1.03||0.19||1.10||0.10||0.79|
|Go Fashion IPO||22 Nov. 2021||100.73||262.08||49.70||135.46|
|Tarsons Products IPO||17 Nov. 2021||115.77||184.58||10.56||1.83||77.49|
|Latent View IPO||12 Nov. 2021||145.48||850.66||119.44||3.87||326.49|
|Sapphire Foods IPO||11 Nov. 2021||7.50||3.46||8.70||6.62|
|Paytm IPO||10 Nov. 2021||2.79||0.24||1.66||1.89|
|S.J.S. Enterprises IPO||3 Nov. 2021||1.42||2.32||1.38||1.59|
|PolicyBazaar IPO||3 Nov. 2021||24.89||7.82||3.31||16.59|
|Fino Payments Bank IPO||2 Nov. 2021||1.65||0.21||5.92||0.93||2.03|
|Nykaa IPO||1 Nov. 2021||91.18||112.02||12.24||1.88||81.78|
|Kotyark Industries IPO||25 Oct. 2021||3.60||10.70||7.15|
|Bombay Metrics Supply Chain IPO||4 Oct. 2021||16.30||20.69||18.50
|Samor Reality IPO||5 Oct. 2021||2.55||0.94||1.74|
|Promax Power IPO||4 Oct. 2021||2.39||11.38||6.89|
|Dynamic Services & Security IPO||5 Oct. 2021||2.33||1.56||1.94|
|Destiny Logistics & Infra IPO||5 Oct. 2021||2.13||7.43||4.78|
|Shri Venkatesh Refineries IPO||1 Oct. 2021||2.43||3.81||3.12|
|Jainam Ferro Alloys IPO||30 Sep. 2021||6.23||7.07||6.65|
|Aditya Birla Sun Life IPO||1 Oct. 2021||10.36||4.39||3.24||1.68||5.25|
|Paras Defence IPO||23 Sep. 2021||169.65||927.70||112.81||304.26
|Sansera Engineering IPO||16 Sep. 2021||26.47||11.37||3.15||1.37||11.47|
|Vijaya Diagnostic IPO||3 Sep. 2021||13.07||1.32||1.09||0.98||4.54|
IPO Investor Categories:
- Qualified Institutional Buyers (QIB): Financial Institutions, Banks, FIIs, and Mutual Funds registered with SEBI are called QIBs. In most cases, QIBs represent small investors who invest through mutual funds, ULIP schemes of insurance companies, and pension schemes.
- Non-Institutional Investors(NII): Individual investors, NRIs, companies, trusts, etc who bid for more than Rs 2
- lakhs are known as Non-institutional bidders or NII. They need not register with SEBI like QIIs.
- Retail Individual Investors(RII): The retail individual investor or NRIs who apply up to Rs 2,00,000 in an IPO are considered as RII reserved category.
- Employee (EMP): A category of eligible employees who have a reserved quota in the IPO.
- Others: A category of eligible shareholders or other investors who have a reserved quota in the IPO
IPOs: A look at the various types of investors
Let’s examine the different categories of investors in greater depth.
According to Securities and Exchange Board of India (SEBI) guidelines, there are four kinds of investors who are eligible to participate in the IPO procedure. They are Commercial banks, Qualified institutional investors (QIIs), public financial institutions as well as mutual fund houses. Foreign Portfolio Investors (FPI) belong to this category.
Underwriters are trying to sell large portions of IPO shares to QIIs for a profit before the beginning of the IPO. The sale of shares for QIIs can go far in helping underwriters reach their goal of capital.
SEBI mandates the signing of a lock-up arrangement for a minimum of 90 days in order to guarantee minimal risk during the IPO procedure.
QIIs are particularly important for companies that are launching an IPO. This is because underwriters provide IPO shares to these investors before the price discovery on the market for shares. If QIIs buy more shares there will be a smaller number of shares accessible for the public at large. This could cause higher share prices. This is a great scenario for companies as they are looking to acquire capital as they can.
The reality is that SEBI is laying down guidelines to ensure that companies do not alter IPO valuations. This is the reason why SEBI does not permit companies to assign over 50% of their shares to QIIs.
QII investor who submits an application for more than 10 crores is considered to be an anchor investor. Anchor investors are typically able to attract additional investors too. As high as 60% of the shares reserved for institutional investors who are qualified can be offered to anchor investors.
All QII investor who submits an application that is more than 10 crores is considered to be anchor investor. These investors usually bring in other investors, too. The majority of shares destined for institutional investors who are qualified can be offered to anchor investors.
The minimum allocation for the retail investor is 35 percent.
SEBI has issued a directive that, in the event that the issue is oversubscribed, subject to the availability of shares for retail investors, they will receive at the very least one share.
If the one-lot-to-each-investor is not possible, a lottery system is used to allocate IPO shares to the public.
High net-worth individuals (HNIs)/Non-institutional investors (NII): Individuals looking to invest more than Rs 2 lakh are categorized as HNIs.
The same goes for institutions that want to make a commitment of more than 2 lakh are referred to as non-institutional investors. The main difference between the two types of investors QII or an NII is that an NII is not required to register with SEBI.
The allocation of shares among HNIs/NIIs is according to a proportional basis, i.e., if one submits a request for 1,000 shares, and the issue is oversubscribed by 10 times, they will be allocated 100 shares (1,000/10).
This means they’re always allocated shares no matter if the share is oversubscribed or not.
Typically 1 to 2 percent of shares is reserved for employees as a means to reward them for taking the risks of becoming a part of a new business.
(Note: We update IPO subscription status for all of these categories in the above table)
Subscription to IPO:
Listing gains: Meaning
The difference between listing gains and oversubscription
How are shares allocated in the event of oversubscription?
It is believed that an IPO is oversubscribed when the amount of shares investors wish to buy is more than the number of shares on the exchanges. In simple terms, oversubscription happens when the amount of shares offered by a business isn’t enough to meet demand.
If a business decides to go public, underwriters evaluate the market to determine the interested potential of investors. When doing this there is always the chance that underwriters are underestimating the level of interest for the IPO and setting a price lower than what the market actually be willing to pay. This leads to an increase in the demand for shares outstripping the number of shares sold.
For example, a predetermined amount of shares that are offered in an IPO is, for instance, 20,000 shares. Ten times oversubscription indicates the demand of investors is approximately 2 lakh shares.
When the number of people who want to participate in an IPO is greater than the amount of capital available then the issuer can increase the price of an IPO, which results in more capital being that is raised for the issuer.
Underwriters have the option of exercising the greenshoe. The greenshoe option permits the underwriters to sell 15 percent more shares than they originally scheduled.
Q. What is the procedure for determining shares allocation when an IPO IS OVERSUBSCRIBED?
Each subscriber has had to deal with the situation of an IPO oversubscription. Therefore, let’s take a look at how businesses allocate shares in these instances.
Allotment of shares is carried out according to predefined rules set by the Securities and Exchange Board of India (SEBI).
In each IPO the investor categories are defined and a certain percentage of shares are allocated to each category.
The categories of investors are defined by:
Qualified institutional investors
The retail investor (who have not invested more than 2 lakhs rupees)
It could be an employee’s category also.
The method of allotment of shares differs for each investor type. Although 50% of shares are assigned to institutional investors who are qualified, approximately 35% of shares are distributed to retail investors.
Allocation procedure for retail investors
Let’s examine the way that retail investors are allocated shares. Let’s first understand what the different kinds of shares are. Shares are issued by companies in lots. A lot, as a general term is a grouping of shares.
Therefore, when you are deciding on the allocation of shares in the event of an oversubscription, the total amount of shares available to retailers is divided according to the size of the lot. This will help determine the number of investors from retail who will receive shares.
Additionally, if the total amount of applications is greater than the number of lots that are available, then no applicant will be allocated greater than one lot. This ensures that all investors get an equal chance of getting IPO shares regardless of the number of lots they’ve placed bids for. This means that the investor who has bid only for one lot will be treated at the same level as an investor who placed a bid on 10 lots. In this way, fairness is guaranteed in the IPO allotment.
Let’s take examine the instance that we saw in the BSE IPO to understand this. In this instance, the IPO was oversubscribed 51.01 times. This means that the total demand of 55 crore shares while just 1.07 crore shares had been actually on offer.
If one took the retail section on its own the oversubscription would be 6.48 times the amount of shares allotted. Keep in mind that investors may apply for several lots at a time. If we look at the various retail shares in the lots and assume that each investor applied for a single share and the total amount of shares demanded is 3.98 times. This means that a retail investor was given a one out of 3.98 chance of receiving only one share. That’s right, more than 75% of investors were not allocated any IPO shares in any way.
But, there is an opportunity to have the total number of investors who are retail over the maximum amount of shares that can be issued. In such a situation, the eligibility for the minimum bid amount will be determined by drawing lots. The draw is an automated, computerized process that leaves no room for errors.
A LINKAGE BETWEEN OVERSUBSCRIPTION & LISTING GAINS
Many IPOs that are popular are oversubscribed due to the fact that many traders are looking to increase their listing earnings.
Often, the stock price on the day of the IPO on exchanges is greater than the IPO price. This allows an investor to sell shares in order to earn profits quickly. This, in turn, is referred to in terms of listing gain.
If an IPO is oversubscribed and priced at a reasonable price and is priced reasonably, it could be able to be successful trading in the market.
Although oversubscription is one of the factors that contribute to a successful listing, it is also dependent on other elements including the IPO prices, the market conditions at the time of listing, etc.
In 2015, of 52 large and small IPOs, there were 26 listed with a rate lower than 10%, and 11 were listed with negative returns.
For traders, the attraction of listing profits is attractive however, in the same way, they must ensure they understand how the market reacts to the IPO as well as the need for an IPO as well as other elements.
On the other hand investors with a long-term view are more concerned about the future of earnings, growth as well as being part of the business.
The reasons for not being able to subscribe
Previous examples of sub-subscriptions
An IPO is considered to be undersubscribed when demand isn’t overwhelming. This is when the quantity of shares offered to the business is greater than the amount of demand.
Q. WHAT HAPPENS IF UNDER SUBSCRIPTION
IPO prices are usually reduced in these situations to ensure that the issue will be fully subscribed by investors even if the issue results in the issuing company not obtaining the capital expected.
The company in question has an alternative choice. Prior to the IPO procedure begins they could enter into a contract with their underwriters that the latter will be required to purchase unsubscribed shares in the event that they are not able to subscribe.
To refresh your memory Companies typically employ an investment bank as underwriters in their IPO process. Underwriters aid companies in determining the correct IPO value.
The eternal spring of hope isn’t any different in the realm of IPOs as well. The companies always wish to see the dark cloud will go away eventually and the IPO price will rise when the offer day arrives. This is also possible because IPO prices for shares are dependent on a myriad of external elements.
The reasons for unsubscribing
There are many causes for the under subscription of an IPO including ignorance of the IPO as well as high prices and poor promotion for the IPO and market conditions.
Many investors also stay away if they spot any problems/irregularities with the company.
MINIMUM SUBSCRIPTION OF 90 %
In accordance with SEBI (Securities and Exchange Board of India) each company requires at least a subscription of 90 percent of the total amount due at the time of closure.
In the event that this does not take place, the business returns the total subscription amount that it has received. It is not a loss for investors since the amount they put in is returned. The company issuing the money is not going to receive any cash.
Even if there isn’t any profit or loss but the confidence of the market in the company will be affected.
(Note: Check day to day IPO subscription status of the respective company by clicking on the link)
Q. HOW DO I AVOID IPOS THAT IS UNDERSUBSCRIBED
First, verify the grade given from SEBI to the firm that is planning an IPO. The grade is calculated on a scale of 5 points. The score will be high if the financial situation is sound and is in good standing with its competition on the market.
The second reason is that it is advised to study the red herring prospectus for the company thoroughly. The document, posted on SEBI’s website offers a wealth of information regarding the financials of the company as well as future plans, among other things.
ALLOTMENT of shares
As there is lesser demand for IPO shares than the number of shares available each bidder gets the full allotment. Imagine that an investor placed an order for 10 lots of shares. In the event that an IPO is not fully subscribed, she’ll be able to get all the shares she submitted for.
In the earlier article, if the IPO is not fully subscribed to, or is less than 90 percent, the shares will be forfeited and the funds are paid back.
The negative impact of under subscriptions can be detrimental to any business. For example, Google, one of the giants of technology has also been confronted with this problem previously. In 2009, Google was forced to cut the price of its shares from $108-135 to a share to $85 to 95 per share. The company eventually kept that price to $85 per share due to lack of demand.
Q. DOES AN UNDER SUBSCRIPTION RESULT IN LOSSES A FEW DAYS AFTER LISTING?
Listing gains are defined as the amount that is the difference between IPO allotment price and price of that stock on listing day at the stock exchange. If the listing day’s price of the stock is higher, then the difference is referred to as listing gains.
Usually, IPOs with a high number of applicants tend to gain on the first day on the exchange.
The undersubscribed IPOs are, however, not likely to achieve record-breaking listing gains. However, that doesn’t mean that the stock will be underperforming all through. They can rebound with time because of better trust in markets, sound financial health, and appropriate market conditions.
A FEW CASES OF UNDER SUBSCRIPTION
For instance, The ICICI IPO was recently not fully subscribed to as many investors believed that the IPO valuation was too excessive. ICICI did not manage to raise more than 50 crores. They were expecting to raise more than 4,400 crores.
In the same week, HAL (Hindustan Aeronautics Limited) was only subscribed to at 50% by day three of the IPO. However, once LIC made the decision to put money into the company, its proportion of subscriptions increased to 99 percent.
To summarize the point, it’s always best to stay clear of the hype around a handful of IPOs. Even the top of them could fail. It is recommended to conduct your own research prior to placing an investment into an IPO.
Frequently Asked Questions:
Where can I check day-to-day IPO subscription status?
You can check day-to-day IPO subscription status by clicking on the respective company names in the table.