Aimtron Electronics IPO Allotment Status

About the Aimtron Electronics IPO

The stock of Aimtron Electronics 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 ₹153 to ₹161 per share. Being a book built issue, the final price will be discovered within this band. The IPO of Aimtron Electronics 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, Aimtron Electronics will issue a total of 54,04,800 shares (54.05 lakh shares approximately), which at the upper band IPO price of ₹161 per share aggregates to fresh fund raising of ₹87.02 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 54,04,800 shares (54.05 lakh shares approximately) which at the upper band IPO price of ₹161 per share will aggregate to overall IPO size of ₹87.02 crore.
Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,81,600 shares. Hem Finlease 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 Mukesh Jeram Vasani, and Nirmal Vasani. The promoter holding in the company currently stands at 100%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 72.91%. The fresh issue funds will be used by the company for capex towards additional plant & machinery, repayment of high cost borrowings and for working capital purposes.

Some part of the funds will also be used for general corporate expenses. Hem Securities Ltd will be the lead manager to the issue, and Link Intime India Private Ltd will be the registrar to the issue. The market maker for the issue is Hem Finlease Private Ltd. The Aimtron Electronics IPO will be listed on the SME IPO segment of the NSE.

When and How to check IPO allotment status

Let us now turn to the million dollar question; How to check the allotment status? Since this is an NSE SME IPO, there is no facility to check on the exchange website since NSE does not offer that facility. On the other hand, the BSE only offers allotment status for mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can check your allotment status only on the website of the IPO registrar, Link Intime India Private Limited. Here are the steps that you need to follow to check allotment status.

Checking the IPO allotment status of Aimtron Electronics on Link Intime India Private Limited (Registrar to the IPO)

Visit the Link Intime registrar website for IPO status by clicking on the link below:

https://linkintime.co.in/IPO/public-issues.html

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there also a way to access this page via the home page of Link Intime India Private Ltd by clicking on the Public Issues link displayed prominently on the home page. It all works the same.
This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Aimtron Electronics IPO from the drop-down box. In the case of Aimtron Electronics, data access will be allowed late on 04th June 2024 or by middle of 05th June 2024. 

• There are 4 options available to you and you will find these 4 options on the above access page itself. You can either access the allotment status based on PAN or Application Number or DPID / Client ID combination or based on the combination of the bank account / IFSC code used to apply for the IPO. You can select any one of the options that is preferred and provide the details accordingly.

• If you opt for the PAN Number access, then enter the 10 character income tax permanent account number (PAN). This is an alphanumeric code available either on your PAN card or on top of your income tax return.

• The second option is to use the Application Number that you used while making an application for the IPO. The application number is available on the acknowledgement provided to you and you can use that as one of the options to access allotment status.

• The third option is to use the DPID-Client ID combination. Remember that here you have to enter the DP id and the demat client id together as one single string. This DPID / Client ID combination is a numeric figure for CDSL demat accounts while it is an alphanumeric string for NSDL demat accounts. This combination of DP ID / Client ID of your demat account will be available in your demat statement or you can also get it online from your online trading account or trading app downloaded on the smart phone.

• The fourth option is to query based on the combination of your bank account number and IFSC number and irrespective of how many bank accounts you have, only use the bank account used for this particular IPO application. Once you click on this option, you find two boxes. First, enter your bank account number as it is. Secondly, enter the 11-character IFSC code, which is available on your cheque book. The first 4 characters of the IFSC code are alphabets and the last 7 characters are numeric. IFSC is an abbreviation for Indian Financial System Code and is unique to each account.

Finally, click on the Search button. You can get the exact allotment status on the number of shares allotted to you. The IPO status with number of shares of Aimtron Electronics allotted will be displayed on the screen in front of you. You can take a screenshot of the output page for your records and later ever for reconciliation with the demat account status when shares are credited to your demat account on 05th June 2024. But what exactly determines the success or otherwise of you getting allotment? It is the allocation quota and the subscription levels

Allocation quota and subscription levels for Aimtron Electronics

The table below captures the quota allocated to various categories, in terms of the number of shares and also the percentage of the total share capital raised. For investors it is the quota for the retail and the HNI that really matters.

Data Source: Company RHP

The next thing to look at is the extent of subscription. The table below captures the extent of oversubscription for each of the categories as well as the overall subscription as of the close of trading on 03rd June 2024. 

Data Source: NSE

The response to the IPO of Aimtron Electronics was fairly robust and it was subscribed 99.26X overall at the close of bidding on 03rd June 2024. The HNI / NII portion was subscribed 203.09 times while the retail portion was subscribed 71.51 times. Even the QIB portion got healthy subscription of 69.93 times in the IPO. This is very robust subscription and gives a relatively low chance of allotment in the IPO. However, it is best to wait for the basis of allotment to be finalized and allotment status updated on June 04, 2024. The allotment status can be checked using the allotment checking modus operandi explained above.

Next steps after the closure of the IPO of Aimtron Electronics

The issue opened for subscription on 30th May 2024 and closed for subscription on 03rd June 2024 (both days inclusive). The basis of allotment will be finalized on 04th June 2024 and the refunds will be initiated on 05th June 2024. In addition, the demat credits are expected to also happen on 05th June 2024 and the stock will list on 06th 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 05th June 2024 under ISIN (INE0RUV01018).

Investors would do well to remember that the level of subscription is very material as it determines the chances of getting allotment. Normally, higher the subscription ratio, lower the chances of allotment and vice versa. In this case, the subscription levels have been very high in the IPO; both in the Retail segment and also in the HNI / NII segment. Investors in the IPO need to assess their chances of allotment accordingly. The final status will be known once the basis of allotment is finalized and uploaded for you to check. You can apply the above allotment checking process flow after the basis of allotment is finalized.