Dindigul Farm Products (En Nutrica) Allotment status

About the Dindigul Farm Products (En Nutrica) IPO

The stock of Dindigul Farm Products (En Nutrica) has a face value of ₹10 per share and it is a book building issue. The price band for the book building issue is set in the range of ₹51 to ₹54 per share. The final price will be discovered in this price band only. The Dindigul Farm Products (En Nutrica) IPO has only a fresh issue component and no offer for sale (OFS) component in the public issue. While the fresh issue portion is EPS dilutive and equity dilutive, OFS is just a transfer of ownership and  hence it is neither EPS dilutive nor is it equity dilutive. As part of the fresh issue portion of the IPO, Dindigul Farm Products (En Nutrica) will issue a total of 64,50,000 shares (64.50 lakh shares), which at the upper band IPO price of ₹54 per share aggregates to fresh fund raising of ₹34.83 crore. Since there is no offer for sale, the fresh issue of shares will also double up as the total issue size. As a result, the overall IPO size will also comprise of the issue of a total of 64,50,000 shares (64.50 lakh shares) which at the upper band of the IPO price at ₹54 per share will aggregate to overall IPO size of ₹34.83 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 3,26,000 shares. Spread X Securities Private Ltd will be the market maker 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 R Rajasekaran, Rajadharshini Rajasekaran and Indrayani Biotech Ltd. The promoter holding in the company currently stands at 80.66%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 59.36%. The fresh issue funds will be used by the company towards proposed capital expenditure and also for meeting some of its working capital needs. Part of the funds will also be used for general corporate purposes. Beeline Capital Advisors Private 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 Spread X Securities Private Ltd. The IPO of Dindigul Farm Products (En Nutrica) will be listed on the SME IPO segment of the BSE.

When and How to check the basis of allotment status

Let us now turn to the million dollar question; How to check the allotment status? Since this is an BSE SME IPO, you can check the allotment status on the BSE website and also on the registrar website. Currently, 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 on the website of the IPO registrar, Link Intime India Private Limited, or on the BSE website, since this is an BSE-SME Iop. Here are the steps that you need to follow to check allotment status.

Checking the allotment status of Dindigul Farm Products (En Nutrica) IPO on BSE website

This is a facility available to mainboard IPOs and BSE SME IPOs. You can access the allotment status of Dindigul Farm Products (En Nutrica) (BSE-SME IPO) on the website of BSE India as under. You can start by clicking on the link below or pasting it on the address bar.

https://www.bseindia.com/investors/appli_check.aspx

Once you reach the page, here are the steps to follow.

• Under Issue Type – Select Equity Option
• Under Issue Name – Select Dindigul Farm Products (En Nutrica)   from the drop down box
• Enter the Application Number exactly as in the acknowledgement slip
• Enter the PAN (10-digit alphanumeric) number
• Once this is done, you need to click on the Captcha to verify that you are not a robot
• Finally click on the Search Button

In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters i.e., either the application / CAF number or the PAN number of the investor.

The allotment status will be displayed on the screen in front of you informing about the number of shares of Dindigul Farm Products (En Nutrica)   allotted into your demat account. It is always advisable to save a screenshot of the allotment status output for subsequently verifying with the demat account credits on or after 26th June 2024. The stock of Dindigul Farm Products (En Nutrica)  will appear in the demat account (if allotted) under ISIN Number (INE0S6R01027).

Checking the allotment status of Dindigul Farm Products (En Nutrica) 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 Dindigul Farm Products (En Nutrica) from the drop-down box. In the case of Dindigul Farm Products (En Nutrica), data access will be allowed late on 25th June 2024 or by middle of 26th 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 Dindigul Farm Products (En Nutrica) 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 26th 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 Dindigul Farm Products (En Nutrica)

The table below captures the break-up of the overall share allocation to retail investors and to the HNI / NII investors. The anchor allotment is carved out of the QIB quota (if any) 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 Spread X Securities Ltd as the market maker and assigned a market making inventory of 3,26,000 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.

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 the IPO bidding on 24th June 2024. 

Data Source: BSE

The response to the IPO of Dindigul Farm Products (En Nutrica) was fairly robust and it was subscribed 202.42 times overall at the close of bidding on 24th June 2024. The HNI / NII portion was subscribed 280.41 times while the retail portion was subscribed 201.44 times. Even the QIB portion got healthy subscription of 145.62 times in the IPO. This is very strong 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 25th, 2024. The allotment status can be checked using the allotment checking modus operandi explained above.

Next steps after the closure of the Dindigul Farm Products (En Nutrica) IPO

The issue opened for subscription on 20th June 2024 and closes for subscription on 24th June 2024 (both days inclusive). The basis of allotment will be finalized on 25th June 2024 and the refunds will be initiated on 26th June 2024. In addition, the demat credits are expected to also happen on 26th June 2024 and the stock will list on 27th June 2024 on the BSE SME IPO segment. The credits to the demat account to the extent of shares allotted will happen by the close of 26th June 2024 under ISIN (INE0S6R01027).

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.