Nirman Agri Genetics IPO Final Subscription Numbers

Nirman Agri Genetics IPO closed on Monday, 20th March 2023. The IPO had opened for subscription on 15th March 2023. Let us look at the final subscription status of Nirman Agri Genetics Ltd at the close of subscription on 20th March 2023.

A quick word on Nirman Agri Genetics Ltd and the SME IPO

Nirman Agri Genetics Limited was incorporated in the year 2020 and focuses on the organized Agri-Input market in India. Nirman Agri Genetics is into production, processing, and marketing of high-quality hybrid seeds, pesticides, and bio-organic products and solutions for the farm sector. These processes are predominantly applied to specific crops like corn, sunflower, cotton, paddy, grain sorghum, etc.

Nirman Agri Genetics Limited had also recently forayed into micronutrients and Bioproducts. In addition, they also produce non-hybrid seeds, primarily for paddy. The company currently has production, outsourced processing, and R&D facilities in Nashik and Nimgul, Maharashtra, Gujarat, and Madhya Pradesh. Currently, the company markets its bio-pesticides, micronutrients, bio-fertilizers, fertilizer mixtures & plant growth regulators under the brand name of "Nirman Agri Genetics”.

The Rs20.30 crore IPO of Nirman Agri Genetics Ltd comprises entirely of a fresh issue. The total SME IPO of Nirman Agri Genetics Ltd entails issue of 20.508 lakh shares at a fixed price of Rs99 per share aggregating to Rs20.30 crore. The stock has a face value of Rs10 and retail bidders can bid in minimum lot size of 1,200 share each. Thus, the minimum investment of Rs118,800 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO. HNIs can invest in 2 lots of 2,400 shares worth Rs237,600 as the bare minimum investment. There is no upper limit for the HNI / NII category. Nirman Agri Genetics Ltd will deploy the funds for working capital needs of the company, organic / inorganic expansion of business and general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 99.99% to 65.59%. The issue is lead managed by First Overseas Capital Ltd, while Bigshare Services Private Limited will be the registrars to the issue. Let us now turn to the final subscription details.

Final subscription status of Nirman Agri Genetics IPO

Here is the subscription status of the Nirman Agri Genetics IPO as at close on 20th March 2023.

The issue was only open for retail investors and for the HNI / NIIs. There was no quota for the QIBs in the SME IPO of Nirman Agri Genetics Ltd. The subscription was dominated by the retail investors followed closely behind by the HNI / NII segment. However, the overall subscription was fairly muted, possibly due to challenging market conditions. Here is the day-wise progression of the subscription status of Nirman Agri Genetics Ltd IPO.

It is clear from the above table that while the retail portion got fully subscribed on the third day of the IPO itself, the HNI / NII portion got fully subscribed only on the last day. The overall subscription completed one-time subscription at the end of the third day itself. Let us finally look at how the distribution of the IPO across classes happened

In the above table, you will find the total number of shares lower than the number of shares issued in the IPO, but that gap is on account of the allocation of 104,400 shares for market making, which is the difference. Market maker for the IPO is NNM Securities Private Ltd.

The issue opened for subscription on 15th March 2023 and closed for subscription on 20th March 2023 (both days inclusive). The basis of allotment will be finalized on 23rd March 2023 and the refunds will be initiated on 24th March 2023. In addition, the demat credits are expected to happen on 27th March 2023 and the stock is scheduled to list on 28th March 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.