Pratham EPC Projects IPO Allotment Status

About the Pratham EPC Projects Ltd IPO

The stock of Pratham EPC Projects Ltd has a face value of ₹10 per share and it is a book building issue. The price for the book building issue is set in the price band of ₹71 to ₹75 per share. Being a book built issue, the price will be discovered in the above band. The Pratham EPC Projects IPO has only a fresh issue component and no offer for sale (OFS) portion. It must be remembered that the fresh issue portion is EPS dilutive and equity dilutive, but OFS is just a transfer of ownership. As part of the fresh issue portion of the IPO, Pratham EPC Projects Ltd will issue a total of 48,00,000 shares (48.00 lakh shares), which at the upper band of IPO price of ₹75 per share aggregates to fresh fund raising of ₹36.00 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also double up as the overall IPO size. 

Therefore, the overall IPO size will also comprise of the issue of 48,00,000 shares (48.00 lakh shares) which at the upper band IPO price of ₹75 per share will aggregate to overall IPO size of ₹36.00 crore. Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,40,000 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 promoter stake currently stands at 100%, which will get diluted to 72.97% post the IPO. The fresh issue funds will be utilized to purchase machinery at its operating plant; apart from meeting working capital needs. 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.

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 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 allotment status 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://www.linkintime.co.in/Initial_Offer/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. It may be noted here that you can either access this page on the internet as above on your laptop / PC; or you can also download the mobile app of Link Intime India Private Ltd (bLink), where you can check for the status of allotment.

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Pratham EPC Projects Ltd from the drop-down box. In the case of Pratham EPC Projects Ltd, data access will be allowed late on 14th March 2024 or by middle of 15th March 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) and click on the SUBMIT button. This is an alphanumeric code available either on your PAN card or on top of your income tax return acknowledgement copy.

• 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. Here again, once you input the application number, you must click on SUBMIT button.

• 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, since the last 4 digits of the IFSC code are the first 4 digits of your bank 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 Pratham EPC Projects Ltd 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 15th March 2024. However, what do you do if you have any complaints or queries or need some clarifications. While there is always the option to send a snail mail; there are quicker options too. You can send an email to : ipo.helpdesk@linkintime.co.in or you can dial their call centre at (0) 810 811 4949.

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 Pratham EPC Projects Ltd

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: NSE

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 13th March 2024. 

The response to the IPO of Pratham EPC Projects Ltd was fairly robust and it was subscribed 177.92X overall at the close of bidding on 13th March 2024. The HNI / NII portion was subscribed 320.32 times while the retail portion was subscribed 178.33 times. This is very high subscription and gives a very low chance of allotment in the IPO. The QIB portion allocation was also at 70.28 levels, which is relatively healthy. The allotment status can be checked using the allotment checking modus operandi explained above.

Next steps after the closure of the IPO of Pratham EPC Projects Ltd

The issue opened for subscription on 11th March 2024 and closed for subscription on 13th March 2024 (both days inclusive). The basis of allotment will be finalized on 14th March 2024 and the refunds will be initiated on 15th March 2024. In addition, the demat credits are also expected to happen on 15th March 2024 and the stock is scheduled to list on 18th March 2024 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The demat credits to the demat account to the extent of allotment will happen by the close of 15th March 2024 under ISIN Number (INE0QA601016).

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.