Shri Techtex IPO: How to Check Allotment Status

The ₹45.14 crore IPO of Shri Techtex Ltd comprises entirely of a fresh issue with no offer for sale (OFS) component. Thus, the overall IPO of Shri Techtex Ltd entails the issue of 74 lakh shares which at the upper band of the price band at ₹61 per share aggregates to ₹45.14 crore. The stock has a face value of ₹10 and the book building price band has been set in the range of ₹54 to ₹61 per share. The retail bidders can bid in minimum lot size of 2,000 share each worth ₹122,000, which is also their upper limit. The HNI / NII investors can invest in 2 lots of 4,000 shares worth ₹244,000 as the minimum investment. Let us quickly look at the category wise allocation in the IPO of Shri Techtex Ltd.

Category wise allocation in Shri Techtex 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.

The response to the IPO of Shri Techtex Ltd was gratifying and it was subscribed 148.36X overall at the close of bidding on 28th July 2023. The table below is self-explicit.

Where to check the basis of allotment

The basis of allotment will be finalized on 02nd August 2023 and the refunds will be initiated on 03rd August 2023. In addition, the demat credits are expected to happen on 04th August 2023 and the stock is scheduled to list on 07th August 2023 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 company had a pre-IPO promoter holding of 100.00% and post the IPO, the promoter stake in Shri Techtex Ltd will stand reduced to 70.34%.

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 of Shri Techtex Ltd 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

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Shri Techtex Ltd from the drop-down box. In the case of Shri Techtex Ltd, data access will be allowed late on 02nd of August 2023 or by middle of 03rd of August 2023.

• 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

The IPO status with number of shares of Shri Techtex 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 August 07, 2023.

Brief background of Shri Techtex Ltd

Shri Techtex Ltd, is an SME IPO on the NSE which had opened for subscription on 26th July 2023. Shri Techtex Ltd was incorporated in 2011 to manufacture polypropylene (PP) non-woven fabrics in a variety of sizes and densities. Typically, Polypropylene non-woven fabrics are used for a variety of ecological applications. They find applications in areas like organic farming, hospitals, healthcare services, nursing homes, home furnishing, industrial goods, consumer goods etc. It has a fairly large institutional market.

Shri Techtex Ltd started off trading in polymers and later graduated to a full-fledged manufacturer of polypropylene (PP) woven fabric. It also undertook manufacturing on a job-work basis on behalf of other manufacturers, as part of its contract manufacturing franchise. However, in 2018, the contract manufacturing business was transferred to Aurum Fabritech. Now Shri Techtex Ltd is only engaged in polypropylene woven fabric.

Post the IPO, the promoter equity in the company will get diluted from 100.00% to 70.34%. The issue is lead managed by Beeline Capital Advisors Private Ltd, while Link Intime India Private Ltd will be the registrars to the issue.