Tunwal E-Motors IPO Allotment Status

How to check Tunwal IPO allotment status online

The IPO of Tunwal E-Motors closed for subscription on 18th July 2024 and the basis of allotment will be finalized on 19th July 2024. Hence, any investor looking to access the basis of allotment and query on the number of shares allotted to them will have to visit the website of the registrar, either late on 19th July 2024 or by middle of 20th July 2024. That is when the data would be ready to check. That brings us to the next question of how to check the allotment status once the basis of allotment is finalized?

How to check the allotment status? Since this is an NSE SME IPO, there is no facility to check on the exchange website and BSE only offers allotment status in the case of mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can check your allotment status online on the website of the IPO registrar, Skyline Financial Services Private Ltd. Here are the steps that you need to follow to check allotment status.

Tunwal E-Motors IPO allotment date - July 19, 2024.

Checking the Tunwal E-Motors IPO allotment status on Skyline Financial Services 

Visit the Skyline Financial Services Private Ltd registrar website for Tunwal E-Motors IPO status by clicking on the link below:

https://www.skylinerta.com/ipo.php

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 Skyline Financial Services Private Ltd by clicking on the Public Issues link displayed prominently on the home page. It all works the same.

The first thing you do is to select the company you want to access the allotment status for. The drop down box will only show companies where the allotment status is already finalized. In this case, you can get to see the name of Tunwal E-Motors on the list around 19th July 2024 when the allotment status and the basis of allotment by the issuer is finalized. Once the company name appears on the drop down, you can click on the company name and go to the next screen.
This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Tunwal E-Motors from the dropdown box. The allotment status will be finalized on 19th July 2024, so in this case, you can access the details on the registrar website either late on 19th July 2024 or by middle of 20th July 2024. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO. Any of the three options can be selected from the same screen by opting for the preferred radio button.

• Firstly, you can search by Beneficiary ID of your demat account. From the page you just need to first select the DP ID / Client ID option. It does not matter whether it is an NSDL account or a CDSL account. All you need to do is to write down the combination of the DP ID and the Client ID in a single string. In the case of NSDL, enter the DP id and Client id in a single string without space. In case of CDSL, just enter the CDSL client number. Remember that the NSDL string is alphanumeric while the CDSL string is a numeric string. The details of your DP and client ID are available in your online DP statement or in the statement of account. After that you can click the Search Button in either cases.

• Secondly, you can access with Application Number / CAF (Composite Application Form) Number. Enter the Application / CAF number and then click on Search Button. Enter the application exactly it is given in the acknowledgement slip given to you post the IPO application process. After that you can click on the Search button to get the details of shares allotted to you in the IPO.

• Thirdly, you can also search by Income Tax PAN number. Once you select PAN (permanent account number) from the dropdown menu, enter your 10-digit PAN number, which is an alphanumeric code. The PAN number will be available on your PAN card or on top of your income tax returns filed. Once you enter the PAN, click on the Search Button.

The IPO status with number of shares of Tunwal E-Motors allotted will be displayed on the screen. You can save a screenshot of the digital output for future reference. Once again, you can verify the demat credit by the close of 22nd July 2024 or after that. Remember that the most important factor in assessing your chances of getting allotment is the quota allocation for each category and the extent of oversubscription in the IPO. Normally, higher the oversubscription in the IPO, the lower are your chances of getting an allotment. Now, let us look at the quotas allocated to each category and also the extent of oversubscription that the IPO of Tunwal E-Motors got.

Tunwal E-Motors IPO: Reservation for various investors categories

The table below captures the break-up of the overall share allocation to retail investors and to the HNI / NII investors. 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 Nikunj Stock Brokers Ltd and Giriraj Stock Broking Private Ltd as the joint market makers for the issue and assigned a market making inventory of 9,80,000 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

In the above IPO of Tunwal E-Motors, there is no dedicated QIB allocation in the IPO. The anchor allocation to the anchor investors is normally carved out of this QIB allocation and hence the company has not done any anchor allocation in the IPO. 

Tunwal E-Motors IPO subscription status

The response to the IPO of Tunwal E-Motors was very modest as the overall issue was subscribed 12.18X at the close of bidding on 18th July 2024 which is actually lower than the comparable median subscription that the NSE SME IPOs have been getting in general. Out of the overall bids received, the retail segment saw 16.64 times subscription and the non-retail HNI / NII portion saw 7.71 times subscription. There was no dedicated QIB portion in the IPO and the QIB bids received, if any, were clubbed with the HNI / NII non-institutional bids. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 18th July 2024.
 

Data Source: NSE

What do we read from the above data? Clearly, the oversubscription to the IPO is very modest so the chances of getting allotment in the IPO is relatively higher for the investors in the IPO. Investors need to factor this oversubscription into their calculations since the probability of getting allotment is inversely proportional to the subscription levels. However, it is best to wait till 22nd July 2024 when the basis of allotment will be finalized for the IPO of Tunwal E-Motors. Post that, the status of allotment can be checked online based on the methodology explained above.

About the Tunwal E-Motors IPO

The stock of the company has a face value of ₹2 per share and it is a fixed price issue. The IPO price for the fixed price issue of Tunwal E-Motors  has been set at ₹59 per share. Being a fixed price IPO, there is no question of price discovery. The IPO of Tunwal E-Motors has a fresh issue component and an 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, Tunwal E-Motors will issue a total of 1,38,50,000 shares (138.50 lakh shares), which at the fixed IPO price of ₹59 per share aggregates to fresh fund raising of ₹81.72 crore.

The offer for sale portion of the IPO of Tunwal E-Motors will entail the sale / offer of 57,50,000 shares (57.50 lakh shares), which at the fixed IPO price of ₹59 per share aggregates to an OFS size of ₹33.93 crore. The entire 57.50  lakh shares in the OFS are being offered by the promoter, Jhumarlal Pannaram Tunwal. Therefore, the overall IPO size will also comprise of the fresh issue and OFS of 1,96,00,000 shares (196.00 lakh shares) which at the fixed IPO price of ₹59 per share aggregates to overall IPO size of ₹115.64 crore. 

Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 9,80,000 shares as quota for market inventory. Nikunj Stock Brokers Ltd and Giriraj Stock Broking Private Ltd have already been appointed as the joint 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 Jhumarlal Pannaram Tunwal. The promoter holding in the company currently stands at 97.04%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 62.34%. The fresh issue funds will be used by the company for inorganic growth via M&A, research & development, and for funding working capital needs of the company. A

small part of the IPO proceeds has also be set aside for general corporate needs. Horizon Financial Private will be the lead manager to the issue, and Skyline Financial Services Private Ltd will be the registrar to the issue. The joint market makers for the issue are Nikunj Stock Brokers Ltd and Giriraj Stock Broking Private Ltd. The Tunwal E-Motors IPO will be listed on the SME IPO segment of the NSE.

Next steps in the IPO of Tunwal E-Motors

The issue opened for subscription on 15th July 2024 and closes for subscription on 18th July 2024 (both days inclusive). The basis of allotment will be finalized on 19th July 2024 and the refunds will be initiated on 22nd July 2024. In addition, the demat credits are expected to also happen on 22nd July 2024 and the stock will list on 23rd July 2024 on the NSE SME IPO segment. Tunwal E-Motors will test the appetite for aluminium packaging stocks in India. The credits to the demat account to the extent of shares allotted will happen by the close of 22nd July 2024 under ISIN (INE0OXV01027).

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 modest  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.