Falcon Technoprojects IPO Allotment Status

About the Falcon Technoprojects India IPO 

The stock of Falcon Technoprojects India has a face value of ₹10 per share and it is a fixed price issue. The fixed price for the IPO has been set at ₹92 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of Falcon Technoprojects 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, Falcon Technoprojects India will issue a total of 14,88,000 shares (14.88 lakh shares), which at the upper band IPO price of ₹92 per share aggregates to fresh fund raising of ₹13.69 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 14,88,000 shares (14.88 lakh shares) which at the upper band IPO price of ₹92 per share will aggregate to overall IPO size of ₹13.69 crore.

Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 74,400 shares as quota for market inventory. Nikunj Stock Brokers 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 Bharat Parihar and Sheetal Parihar.

The promoter holding in the company currently stands at 84.20%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 60.81%. The fresh issue funds will be used by the company for meeting the working capital needs of the company as part of its regular operations. A small part of the IPO proceeds has also be set aside for general corporate purposes. Kunvarji Finstock Private Ltd will be the lead manager to the issue, and KFIN Technologies Ltd will be the registrar to the issue. The market maker for the issue is Nikunj Stock Brokers Ltd. The Falcon Technoprojects IPO will be listed on the SME IPO segment of the NSE.

What you must know about allotment status checking

Allotment status online is an internet facility that is provided by the BSE (formerly Bombay Stock Exchange) in the case of mainboard IPOs and BSE SME Segment IPOs as well as by the registrars on their website. Many of the brokers also provide direct connectivity to the database. However, in the absence of any connectivity, one option you always can use is the registrar access to the allotment status. In this case, Falcon Technoprojects India is an NSE SME Emerge IPO and hence the data would not be available on the website of BSE. 

NSE does not provide this facility on its website. That means; you can only check the allotment status on the website of the IPO registrar, KFIN Technologies Limited (formerly Karvy Computershare). The allotment in the IPO will depend on the extent of the oversubscription across the retail, HNI / NII and the QIB portion and it is the valid applications that will make the cut. But we will look at that later. Let us first look at when and where to check allotment status of Falcon Technoprojects India IPO. 

How to check Falcon Technoprojects ipo allotment status?

The IPO basis of allotment will be finalized on 24th June, 2024. Hence, either late on 24th June 2024 or by middle of 25th June 2024, the allotment status can be checked online on the website of the IPO registrar. Where can the allotment status be checked? Typically, in all the mainboard issues and BSE SME IPO issues, it is possible to get the allotment status of the IPO either at the BSE website or on the website of the registrar to the IPO. In the case of Falcon Technoprojects India, being an NSE-SME IPO, it can only be checked on the website of the registrar to the IPO i.e., KFIN Technologies Ltd.

Falcon Technoprojects IPO allotment status is expected on June 24, 2024.

Checking the Falcon Technoprojects Ipo allotment status on KFIN Technologies

Visit the website of KFIN Technologies Ltd, which has been appointed as the registrar for the issue. You can access their website for IPO status by clicking on the link below:

https://ris.kfintech.com/ipostatus/

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 is also a way to access this page via the home page of KFIN Technologies Ltd but that pathway is slightly more complex as the website is designed more as a B2B website, so you can avoid that.
Here you are given the choice to select 5 servers viz. Link 1, Link 2, Link 3, Link 4, and Link 5. There is nothing to be confused, as these are just server backups in case one of the servers is experiencing too much traffic. You can select any of these 5 servers and in case you are finding problems accessing one of the servers, then try the other one. There is no difference, which server you select.

A small thing to remember here. Unlike on the BSE website, where the names of all IPOs are there on the drop-down menu, the registrar will only provide of the IPOs managed by them and where the allotment status is already finalized. Also, with the radio buttons you have a choice. You can either choose to see all IPOs or just recent IPOs. Choose the latter option, as that reduces the length of the list of IPOs you need to search through. Once you click on Recent IPOs, the dropdown will only show the recent active IPOs, so once the allotment status is finalized, you can select Falcon Technoprojects India from the drop-down box. In this case, the name of Falcon Technoprojects India will be available on the dropdown from 24th June 2024, once the basis of allotment is finalized.

There are 3 options. You can either query the allotment status based on Application Number or Demat Account (DPID-Client ID combination) or by PAN.

1) To Query by Application Number, check the appropriate box and follow these steps.

• Enter the Application Number as it is
• Enter the 6-digit Captcha Code
• Click on Submit button
• Allotment Status gets displayed on screen

In the past, the first step was to select Application Type (ASBA or Non-ASBA) before inputting your application number. Now, that step has been done away with.

2) To Query by Demat Account, check the appropriate box and follow these steps.

• Select the depository (NSDL / CDSL)
• Enter the DP-ID (Alphanumeric for NSDL and Numeric for CDSL)
• Enter the Client-ID
• In the case of NSDL, the Demat account is 2 strings
• In the case of CDSL, the Demat account is just 1 string
• Enter the 6-digit Captcha Code
• Click on Submit button
• Allotment Status gets displayed on screen

3) To Query by PAN, check the appropriate box and follow these steps.
•    Enter the 10-digit PAN number
•    It will be available on your PAN card or your last filed tax return copy
•    PAN is of 10 characters; sixth to ninth characters are digits and rest are alphabets
•    Once you enter the PAN number, Enter the 6-digit numeric Captcha Code
•    Click on Submit button
•    Allotment status gets displayed on screen

You may note that at times the captcha code may not be clear. You have the choice of toggling for more options in such cases.

It is always advisable to retain a saved screenshot of the allotment status output for future reference. The same can be tallied with the demat account credit subsequently after the demat allotment is completed by the end of 25th June 2024. The demat credit to the extent of shares allotted in the IPO would be visible under (ISIN - INE0PQK01013)  in your demat account mandate provided in the IPO application. Nowadays, the refunds are issued and the demat allocation is also done on the same day, so there is no time lag and you can check both the data points from demat account and bank account on the same day.

Subscription status for the Falcon Technoprojects IPO

Here is the final subscription status of the Falcon Technoprojects India IPO as at close on 21st June 2024, at 19.00 hours.

Data Source: NSE

The issue was open for retail investors, and for HNI / NII investors. Any institutional bids that came in were clubbed with the HNI / NII non-institutional portion. There was a broad quota designed for each of the segments viz. the retail, and the HNI NIIs. As can be seen above, the overall IPO got subscribed at an impressive 66.50 times with the retail portion subscribed 87.61 times, and the HNI / NII portion subscribed 45.39 times.

There was no QIB allocation in the IP ; and these are the final allocation numbers as of the NSE closing time of the day on 21st June 2024. The net issue in the IPO above is the issue size net of the market making portion and the anchor allocation portion, which is the number used to calculate the oversubscription. In this case, the subscription ration for retail and HNI / NII portion is fairly high and that proportionately reduces the chances of subscription for the investors. 

The table below captures the allocation reservation done for each of the categories. 

Data Source: Company RHP

The anchor allocation (if applicable) above is carved out of the overall QIB quota and the original QIB portion is reduced to the public accordingly. The market maker uses the shares to offer buy and sell quotes on the counter post listing so as to keep the counter liquid and reduce the basis risk of trading in the stock.

Brief on the next steps on Falcon Technoprojects India IPO

The issue opened for subscription on 19th June 2024 and closed for subscription on 21st June 2024 (both days inclusive). The basis of allotment will be finalized on 24th June 2024 and the refunds will be initiated on 25th June 2024. In addition, the demat credits are expected to also happen on 25th June 2024 and the stock will list on 26th June 2024 on the NSE SME IPO segment. Falcon Technoprojects India will test the appetite for service stocks in India. The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE0PQK01013).

Investors must 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.