Ambey Laboratories IPO Subscription Status

Ambey Laboratories IPO Subscription Status on Day-2 at 39.13 times

As of 5.18 pm on 05th July 2024, out of the 43.72 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Ambey Laboratories saw bids for 1,710.96 lakh shares. This implies an overall subscription of 39.13X at a macro level at the close of Day-2 of the IPO. The granular break-up of subscriptions as of the close of Day-2 of the Ambey Laboratories IPO was as follows:

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: NSE

The IPO is open up to July 08th, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-2 of the IPO. The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

The stock of Ambey Laboratories 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 ₹65 per share to ₹68 per share. Being a book built IPO, the final price discovery will happen in the above price band only. The issue closes for subscription on 08th July 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 10th July 2024 under ISIN (INE0M3I01029).

Ambey Laboratories IPO - Day-1 Subscription at 16.63 times

As of 5.17 pm on 04th July 2024, out of the 43.72 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Ambey Laboratories saw bids for 727.12 lakh shares. This implies an overall subscription of 16.63X at a macro level at the close of Day-1 of the IPO. The granular break-up of subscriptions as of the close of Day-1 of the Ambey Laboratories IPO was as follows:

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids, and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: NSE

The IPO is open up to July 08th, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-1 of the IPO. The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

Ambey Laboratories – Share Allocation Across Categories

The table below captures the break-up of the overall share allocation to QIBs, retail investors and to the HNI / NII investors. The anchor allotment is carved out of the QIB quota and the QIB quota is reduced accordingly. 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 as the market maker and assigned a market making inventory of 3,30,000 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

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 03rd, 2024, the company made an anchor allocation of 18,68,000 shares to anchor investors at the upper band book building price of ₹68 per share. This included the par value of ₹10 per share and premium of ₹58 per share. The total size of the anchor allocation was ₹12.70 crore.

The anchor allocation was done across 5 anchor investors at the upper end of the price band at ₹68 per share. These 5 major anchor investors included Nakshatra Stressed Assets Fund Scheme-I (31.05%), Vikasa India EIF-I Fund - INCUBE (21.40%), Saint Capital Fund (15.85%), J4S Venture Fund-I (15.85%), and SB Opportunities Fund (15.85%). There were no other anchor investors allotted shares in the pre-IPO anchor bidding on July 03rd, 2024.

Out of the total anchor allocation of ₹12.70 crore, a total of 50% of the allocation will have a 1-month lock in up to August 08, 2024 and the balance 50% will have a 3-month lock-in up to October 07, 2024. 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 47.49% to 19.06%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About Ambey Laboratories IPO

The stock of Ambey Laboratories 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 ₹65 per share to ₹68 per share. Being a book built IPO, the final price discovery will happen in the above price band only. The IPO of Ambey Laboratories has a fresh issue component and a small offer for sale (OFS) portion too. 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, Ambey Laboratories will issue a total of 65,52,000 shares (65.52 lakh shares), which at the upper band IPO price of ₹68 per share aggregates to fresh fund raising of ₹44.55 crore. The offer for sale (OFS) will comprise the offer / sale of 3,12,000 shares (3.12 lakh shares), which at the upper band IPO price of ₹68 per share aggregates to overall OFS size of ₹2.12 crore. The entire OFS sale of 3.12 lakh shares is being offered by Sarina Gupta, who is one of the promoters of the company.

Read more about Ambey Laboratories IPO

Hence the overall size of the issue will be the sum of the fresh issue and the OFS. Therefore, the overall IPO size will comprise of the issue and sale of 68,64,000 shares (68.64 lakh shares) which at the upper band IPO price of ₹68 per share aggregates to overall IPO size of ₹46.68 crore. Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 3,30,000 shares as quota for market inventory. Nikunj Stock Brokers Ltd has already been appointed as the market makers to the issue. The company has been promoted by Archit Gupta, Arpit Gupta, Sarina Gupta, and Rishita Gupta. The promoter holding in the company currently stands at 94.97%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 69.08%. The fresh issue funds will be used by the company for meeting the working capital requirements of the ongoing business. Fast Track Finsec 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 Nikunj Stock Brokers Ltd. The IPO of Ambey Laboratories will be listed on the SME IPO segment of the NSE.

Next Steps in the Ambey Laboratories IPO process

The issue opened for subscription on 04th July 2024 and closes for subscription on 08th July 2024 (both days inclusive). The basis of allotment will be finalized on 09th July 2024 and the refunds will be initiated on 10th July. In addition, the demat credits are expected to also happen on 10th July and the stock will list on 11th July on the NSE SME IPO segment. The credits to the demat account to the extent of shares allotted will happen by the close of 10th July 2024 under ISIN (INE0M3I01029).