Durlax Top Surface IPO Subscription Status

Durlax Top Surface - IPO Subscription Status on Day-3

As of 6.54 pm on 21st June 2024, out of the 51.08 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Durlax Top Surface saw bids for 8,703.26 lakh shares. This implies an overall subscription of 170.38X at a macro level at the close of Day-3 of the IPO. The granular break-up of subscriptions as of the close of Day-3 of the Durlax Top Surface IPO was as under:

The subscriptions were led by the HNI / NII investors followed by the Retail investors and then by the QIB investors in that order. The QIB quota and the NII / HNI typically gather most of the momentum on the last day, and that was 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 was open up to June 21, 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-3 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 price for the book building issue is set in the price band of ₹65 to ₹68 per share. The issue opened for subscription on 19th June 2024 and closed for subscription on 21st June 2024. The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE0OUW01013).

Durlax Top Surface - IPO Subscription Status on Day-2

As of 5.21 pm on 20th June 2024, out of the 51.08 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Durlax Top Surface saw bids for 716.98 lakh shares. This implies an overall subscription of 14.04X 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 Durlax Top Surface IPO was as under:

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 June 21, 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 price for the book building issue is set in the price band of ₹65 to ₹68 per share. The issue opened for subscription on 19th June 2024 and closes for subscription on 21st June 2024. The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE0OUW01013).
 

Durlax Top Surface IPO - Day-1 Subscription at 5.88 times

As of 5.12 pm on 19th June 2024, out of the 51.08 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Durlax Top Surface saw bids for 300.48 lakh shares. This implies an overall subscription of 5.88X 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 Durlax Top Surface IPO was as under:

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 June 21, 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.

Durlax Top Surface IPO – 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 Globalworth Securities Ltd as the market maker and assigned a market making inventory of 3,00,000 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 June 18, 2024, the company made an anchor allocation of 5,92,000 shares to anchor investors at a 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 ₹4.03 crore.

The anchor allocation was done across 2 anchor investors at the upper end of the price band at ₹68 per share. These 2 major anchor investors included Beacon Stone Capital VCC – Beacon Stone - I (50.00%), and Astorne Capital VCC – Arven (50.00%). These 2 anchor investors accounted for 100% of the anchor placement.

Out of the total anchor allocation of ₹4.03 crore, a total of 50% of the allocation will have a 1-month lock in up to July 24, 2024 and the balance 50% will have a 3-month lock-in up to September 22, 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 47.40% to 37.53%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About Durlax Top Surface IPO

Durlax Top Surface IPO  has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹65 to ₹68 per share. Being a book built issue, the final price will be discovered within this band. The IPO of Durlax Top Surface has a fresh issue component and also 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, Durlax Top Surface  will issue a total of 42,00,000 shares (42.00 lakh shares), which at the upper band IPO price of ₹68 per share aggregates to fresh fund raising of ₹28.56 crore. As part of the offer for sale (OFS) portion of the IPO, the issue will see an offer / sale of 18,00,000 shares (18.00 lakh shares), which at the upper band IPO price of ₹68 per share aggregates to overall OFS issue size of ₹12.24 crore. The entire OFS of 18 lakh share is being offered by the promoter shareholder, Shravan Suthar.

Therefore, the overall IPO size will also comprise of the fresh issue and an OFS of 60,00,000 shares (60.00 lakh shares) which at the upper band IPO price of ₹68 per share will aggregate to overall IPO size of ₹40.80 crore. Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 3,00,000 shares as quota for market making inventory. Globalworth Securities Ltd has already been appointed as the 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 Shravan Suthar and Lalit Suthar. The promoter holding in the company currently stands at 95.44%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 60.35%. The fresh issue funds will be used by the company to part finance its working needs in the normal course of running the business. A small part of the IPO proceeds has also be set aside for general corporate purposes. Expert Global Consultants Private Ltd will be the lead manager to the issue, and Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is Globalworth Securities Ltd. The IPO of Durlax Top Surface  will be listed on the SME IPO segment of the NSE.

Next Steps in the Durlax Top Surface IPO process

The issue opened for subscription on 19th June 2024 and closes for subscription on 21st June 2024 (both days inclusive). The basis of allotment will be finalized on 24th June 2024 and the refunds will be initiated on 25th June 2024. In addition, the demat credits are expected to also happen on 25th June 2024 and the stock will list on 26th 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 25th June 2024 under ISIN (INE0OUW01013).