United Cotfab IPO Allotment Status

About the United Cotfab IPO

The stock of United Cotfab has a face value of ₹10 per share and it is a fixed price issue. The price for the fixed price issue is set at ₹70 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of United Cotfab has only a fresh issue component with no offer for sale (OFS) component in the . While the fresh issue portion is EPS dilutive and equity dilutive, OFS is just a transfer of ownership and  hence not EPS or equity dilutive. As part of the fresh issue portion of the IPO, United Cotfab will issue a total of 51,84,000 shares (51.84 lakh shares), which at the fixed IPO price of ₹70 per share aggregates to fresh fund raising of ₹36.29 crore. Since there is no offer for sale, the fresh issue portion will also double up as the overall issue size. As a result, the overall IPO size will also comprise of the issue of 51,84,000 shares (51.84 lakh shares) which at the fixed IPO price of ₹70 per share will aggregate to overall IPO size of ₹36.29 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,60,000 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 company has been promoted by Nirmalkumar Mangalchand Mittal and Gagan Nirmalkumar Mittal. The promoter holding in the company currently stands at 100.00%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 69.84%. The fresh issue funds will be used by the company towards funding the working capital gaps in the regular operations of the company. Beeline Capital Advisors Private Ltd will be the lead manager to the issue, and Purva Share Registry India Private Ltd will be the registrar to the issue. The market maker for the issue is Spread X Securities Private Ltd. The United Cotfab IPO will be listed on the SME IPO segment of the BSE.

United Cotfab IPO allotment status is expected on June 20, 2024.

Checking United Cotfab IPO allotment status

How to check the allotment status. Since this is an BSE SME IPO, you have the dual facility to check on the exchange website of BSE; which is available to all mainboard IPOs and for BSE SME IPOs. Apart from checking allotment status on the BSE website, you can also check your allotment status on the website of the IPO registrar, Purva Share Registry India Private Ltd. Alternatively, if your broker provides you a link to access the allotment status, you can do the same. Here are the steps that you need to follow to check allotment status.
 

How to check United Cotfab IPO allotment status on BSE website

This is a facility available to mainboard IPOs and BSE SME IPOs. You can access the allotment status of United Cotfab (BSE-SME IPO) on the website of BSE India as under. You can start by clicking on the link below or pasting it on the address bar.

https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.

• Under Issue Type – Select Equity Option
• Under Issue Name – Select United Cotfab   from the drop down box
• Enter the Application Number exactly as in the acknowledgement slip
• Enter the PAN (10-digit alphanumeric) number
• Once this is done, you need to click on the Captcha to verify that you are not a robot
• Finally click on the Search Button

In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters i.e., either the application / CAF number or the PAN number of the investor.

The allotment status will be displayed on the screen in front of you informing about the number of shares of United Cotfab   allotted into your demat account. It is always advisable to save a screenshot of the allotment status output for subsequently verifying with the demat account credits on or after 21st June 2024. The stock of United Cotfab  will appear in the demat account (if allotted) under ISIN Number (INE0S0I01011).

Checking United Cotfab IPO allotment status on Purva Share Registry India Private

Visit the Purva Share Registry India Private Ltd registrar website for IPO status by clicking on the link below:

https://www.purvashare.com/investor-service/ipo-query

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 Purva Share Registry Private Ltd by clicking on the Investor services dropdown on the home page and then clicking on the IPO Query link displayed prominently underneath it. It all works the same.

Here, as soon as you click on the link, you are brought to the main landing page. On the top of the page will be the option to select the company for which you want to check the allotment status. Here the company will be available on the drop down list only after the allotment status is finalized on 20th June 2024. You can then select the stock of United

Cotfab IPO from the drop down list to check the allotment status. 

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select United Cotfab from the drop down box. The allotment status will be finalized on 20th June 2024, so in this case, you can access the details on the registrar website either late on 20th June 2024 or by middle of 21st June 2024. Once the company is selected from the dropdown box, you have 2 methods to check the allotment status for the IPO.

• Firstly, you can access with Application Number / CAF 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.

• Secondly, 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 United Cotfab allotted will be displayed on the screen. You can save a screenshot of the screen for future reference. Once again, you can verify the demat credit by the close of 21st June 2024.

How allocation quota and subscription impact basis of allotment

Here is a quick look at how the allocation was made across different categories of investors in the IPO of United Cotfab.
 

Data Source: Company RHP

The response to the IPO of GP Eco Solutions India was extremely strong and it was subscribed by 856.37X overall at the close of bidding on 19th June 2024 with the HNI / NII segment seeing 1,825.61 times subscription, and the Retail portion seeing 793.20 times subscription. Even the dedicated QIB quota got very strong subscriptions at 236.64 times the allocated quota. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 19th June 2024. The IPO was kept open for a period of 3 trading days.

Data Source: NSE

In the above case, the subscription is extremely robust and strong for retail and HNI / NII, and that largely makes the chances of allotment in the IPO substantially lower. This subscription is much higher than the median subscription that NSE-SME IPOs generally get to see.

Next steps in the IPO of GP Eco Solutions India

The issue opened for subscription on 14th June 2024 and closed for subscription on 19th June 2024 (both days inclusive). The basis of allotment will be finalized on 20th June 2024 and the refunds will be initiated on 21st June 2024. In addition, the demat credits are expected to also happen on 21st June 2024 and the stock will list on 24th June 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 21st June 2024 under ISIN (INE0S7E01015).

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.