Sylvan Plyboard IPO Subscription Status

Sylvan Plyboards (India) IPO - Day-3 Subscription at 82.63 times

As of 6.58 pm on 26th June 2024, out of the 48.44 lakh shares on offer in the IPO (excluding the market maker portion), Sylvan Plyboard (India) saw bids for 4,002.70 lakh shares. This implies an overall subscription of 82.63X at a macro level at the close of Day-3 of the IPO. The granular break-up of subscriptions as of the close of the Day-3 of the Sylvan Plyboard IPO was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors in that order. Since there is no QIB quota in this IPO, 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. 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 excludes anchor portion.

Data Source: NSE

The IPO is open up to June 26, 2024, at which point we will know the final subscription status of the IPO. As of date, the subscription data represents the full subscription as on the close of Day-3 of the IPO only. The IPO has closed for subscription and the table above depicts the final subscription numbers for the IPO.
The stock of Sylvan Plyboard (India) has a face value of ₹10 per share and it is a fixed price issue. The fixed issue price for the IPO has been set at ₹55 per share. The issue closed for subscription on 26th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 28th June 2024 under ISIN (INE01IH01015).
 

Sylvan Plyboards IPO - Day-2 Subscription at 8.75 times

As of 5.25 pm on 25th June 2024, out of the 48.44 lakh shares on offer in the IPO (excluding the market maker portion), Sylvan Plyboard (India) saw bids for 424.00 lakh shares. This implies an overall subscription of 8.75X at a macro level at the close of Day-2 of the IPO. The granular break-up of subscriptions as of the close of the Day-2 of the Sylvan Plyboard IPO was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors in that order. Since there is no QIB quota in this IPO, 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. 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 excludes anchor portion.

Data Source: NSE

The IPO is open up to June 26, 2024, at which point we will know the final subscription status of the IPO. As of date, the subscription data represents the full subscription as on the close of Day-2 of the IPO only.

The stock of Sylvan Plyboard (India) has a face value of ₹10 per share and it is a fixed price issue. The fixed issue price for the IPO has been set at ₹55 per share. The issue closes for subscription on 26th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 28th June 2024 under ISIN (INE01IH01015).

Sylvan Plyboards IPO - Day-1 Subscription at 1.76 times

As of 5.13 pm on 24th May 2024, out of the 48.44 lakh shares on offer in the IPO (excluding the market maker portion), Sylvan Plyboard (India) saw bids for 85.08 lakh shares. This implies an overall subscription of 1.76X at a macro level at the close of Day-1 of the IPO. The granular break-up of subscriptions as of the close of the Day-1 of the IPO of Sylvan Plyboard IPO was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors in that order. Since there is no QIB quota in this IPO, 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. 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 excludes anchor portion.

Data Source: NSE

The IPO is open up to June 26, 2024, at which point we will know the final subscription status of the IPO. As of date, the subscription data represents the full subscription as on the close of Day-1 of the IPO only.

Sylvan Plyboards 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. There is no QIB quota in this IPO, and 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.

Data Source: Company RHP

In the above IPO of Sylvan Plyboard (India), 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 5.04% 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 Sylvan Plyboards (India) IPO

The stock of Sylvan Plyboard (India) has a face value of ₹10 per share and it is a fixed price issue. The fixed issue price for the IPO has been set at ₹55 per share. Being a fixed price IPO, the issue of price discovery does not arise. The IPO of Sylvan Plyboard (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, Sylvan Plyboard (India) will issue a total of 51,00,000 shares (51.00 lakh shares), which at the fixed IPO price of ₹55 per share aggregates to fresh fund raising of ₹28.05 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 51,00,000 shares (51.00 lakh shares) which at the fixed IPO price of ₹550 per share aggregates to overall IPO size of ₹28.05 crore. 

Read more about Sylvan Plyboard IPO

Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 2,56,000 shares as quota for market inventory. Black Fox Financial Private Ltd has already been appointed as the market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs. The company has been promoted by Anand Kumar Singh, Jai Prakash Singh, Shakuntala Singh, Kalyani Singh, and M/S Singh Suppliers Private Ltd. The promoter holding in the company currently stands at 99.80%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 73.53%. The fresh issue funds will be used by the company for capex towards purchase of additional plant and machinery, and working capital expenses. A small part of the IPO proceeds has also be set aside for general corporate purposes. Finshore Management Services Ltd will be the lead manager to the issue, and Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is Black Fox Financial Private Ltd. The IPO of Sylvan Plyboard (India) will be listed on the SME IPO segment of the NSE.

Next Steps in the Sylvan Plyboard (India) IPO process

The issue opened for subscription on 24th June 2024 and closes for subscription on 26th June 2024 (both days inclusive). The basis of allotment will be finalized on 27th June 2024 and the refunds will be initiated on 28th June 2024. In addition, the demat credits are expected to also happen on 28th June 2024 and the stock will list on 01st July 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 28th June 2024 under ISIN (INE01IH01015).

Check Sylvan Plyboard IPO allotment status