Sati Poly Plast IPO Allotment Status

How to check the Sati Poly Plast IPO allotment status

Let us ask the million dollar question; How to check the IPO 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 Sati Poly IPO allotment status on Link Intime

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 Sati Poly Plast IPO from the drop-down box. In the case of Sati Poly Plast, data access will be allowed late on 18th July 2024 or by middle of 19th July 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 Sati Poly 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 19th July 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 Sati Poly Plast

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 issue size, net of the market maker quota, has been divided between the QIB investors, retail investors and the HNI / NII investors. On July 10th, 2024, the company made an anchor allocation of 3,79,000 shares to anchor investors at the upper band price. The anchor portion was carved out of the QIB portion, as a result of which the QIB quota available in the IPO was reduced from 47.34% to 18.95%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

Sati Poly Plast IPO subscription tatus

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 16th July 2024. 

Data Source: NSE

The response to the IPO of Sati Poly Plast was very strong and it was subscribed 499.21X overall at the close of bidding on 16th July 2024. The HNI / NII portion was subscribed 569.88 times while the retail portion was subscribed 670.62 times. Even the QIB portion got healthy subscription of 146.00 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 July 18, 2024. The allotment status can be checked using the allotment checking modus operandi explained above.

About the Sati Poly Plast IPO

The stock of the company has a face value of ₹10 per share and it is a book built issue. The book building price band for the IPO has been set in the range of ₹123 to ₹130 per share. The final price discovery will happen in the above price band only. The Sati Poly IPOhas 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, Sati Poly Plast will issue a total of 13,35,000 shares (13.35 lakh shares), which at the upper band IPO price of ₹130 per share aggregates to fresh fund raising of ₹17.36 crore. Since there is no offer for sale, the fresh issue will also double up as the overall size of the IPO. Therefore, the overall IPO size will also comprise of the issue of 13,35,000 shares (13.35 lakh shares) which at the upper band IPO price of ₹130 per share aggregates to overall IPO size of ₹17.36 crore.

Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 70,000 shares as quota for market inventory. Spread X Securities 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 Balmukund Jhunjhunwala, Anita Jhunjhunwala, Aditya Jhunjhunwala, Keshav Jhunjhunwala and M/S Balmukund Jhunjhunwala HUF. The promoter holding in the company currently stands at 86.30%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 63.00%. The fresh issue funds will be used by the company for its short term and long term working capital requirements in the business. A small part of the IPO proceeds has also be set aside for 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. The IPO of Sati Poly Plast will be listed on the SME IPO segment of the NSE.

Next steps after the closure of the IPO of Sati Poly Plast

The issue opened for subscription on 12th July 2024 and closes for subscription on 16th July 2024 (both days inclusive). The basis of allotment will be finalized on 18th July 2024 and the refunds will be initiated on 19th July 2024. In addition, the demat credits are expected to also happen on 19th July 2024 and the stock will list on 22nd 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 19th July 2024 under ISIN (INE0RPM01017).

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.