Effwa Infra & Research IPO Subscription Status

Effwa Infra and Research IPO - Day-3 Subscription at 313.73 times

As of 7.06 pm on 09th July 2024, out of the 41.792 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Effwa Infra and Research saw bids for 13,111.20 lakh shares. This implies an overall subscription of 313.73X 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 Effwa Infra and Research IPO was as follows:

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 will 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 is open up to July 09th, 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. As of today, the IPO has closed and the above table is the final subscription data for 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 Effwa Infra and Research 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 ₹78 to ₹82 per share. The final price discovery will happen in the above price band only. The issue closes for subscription on 09th July 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 11th July 2024 under ISIN (INE0U9101019).

Effwa Infra and Research IPO - Day-2 Subscription at 54.14 times

As of 5.15 pm on 08th July 2024, out of the 41.792 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Effwa Infra and Research saw bids for 2,262.544 lakh shares. This implies an overall subscription of 54.14X 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 Effwa Infra and Research 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 09th, 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 Effwa Infra and Research 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 ₹78 to ₹82 per share. The final price discovery will happen in the above price band only. The issue closes for subscription on 09th July 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 11th July 2024 under ISIN (INE0U9101019).

Effwa Infra and Research IPO Subscription Status on Day-1 at 16.95 times

As of 5:15 pm on 5th July 2024, out of the 41.792 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation), Effwa Infra and Research saw bids for 708.24 lakh shares. This implies an overall subscription of 16.95 times 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 Effwa Infra and Research 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 09th, 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.

Effwa Infra and Research - 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 Rikhav Securities Ltd as the market maker and assigned a market making inventory of 3,24,800 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 04th, 2024, the company made an anchor allocation of 17,48,800 shares to anchor investors at the upper band book building price of ₹82 per share. This included the par value of ₹10 per share and premium of ₹72 per share. The total size of the anchor allocation was ₹14.34 crore.

The anchor allocation was done across 7 anchor investors at the upper end of the price band at ₹82 per share. Out of these 7 anchors, 5 anchor investors got allotted 14% or more of the anchor allotment. These 5 anchor investors include Next Orbit Ventures Fund (27.54%), Craft Emerging Markets Fund PCC – Elite Capital (14.27%), Beacon Stone Capital VCC (14.27%), NAV Capital VCC – NAV Capital Star Fund (14.27%), and Bengal Finance and Investments Private Ltd (14.00%). There were also 2 other anchor investors allotted shares in the pre-IPO anchor bidding on July 04th, 2024. The Anchor bidding ahead of the IPO opened and closed on the same day; one day ahead of the IPO opening.

Out of the total anchor allocation of ₹14.34 crore, a total of 50% of the allocation will have a 1-month lock in up to August 09, 2024 and the balance 50% will have a 3-month lock-in up to October 08, 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 46.65% to 18.68%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About Effwa Infra and Research IPO

The stock of Effwa Infra and Research 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 ₹78 to ₹82 per share. The final price discovery will happen in the above price band only. The IPO of Effwa Infra and Research 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, Effwa Infra and Research will issue a total of 53,16,800 shares (53.17 lakh shares approximately), which at the upper band IPO price of ₹82 per share aggregates to fresh fund raising of ₹43.60 crore. As part of the offer for sale, a total of 9,36,000 shares (9.36 lakh shares) will be offered, which at the upper band price of ₹82 per share aggregates to OFS size of ₹7.68 crore. The entire 9.36 lakh shares is being offered by the 2 promoter shareholders; Dr Varsha Subhash Kamal (4.65 lakh shares) and Subhash Ramavatar Kamal (4.71 lakh shares).

Read more about Effwa Infra and Research IPO

Therefore, the overall IPO size will also comprise of the fresh issue and an offer for sale of 62,52,800 shares (62.53 lakh shares approximately) which at the upper band IPO price of ₹82 per share aggregates to overall IPO size of ₹51.27 crore. Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 3,24,800 shares as quota for market inventory. Rikhav 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 Dr Varsha Subhash Kamal and Subhash Ramavatar Kamal. The promoter holding in the company currently stands at 99.99%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 72.99%. The fresh issue funds will be used by the company for capex towards purchase of new office equipment, to meet the working capital needs and also partially for general corporate purposes. Shreni Shares 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 Rikhav Securities Ltd. The IPO of Effwa Infra and Research will be listed on the SME IPO segment of the NSE.

Next Steps in the Effwa Infra and Research IPO process

The issue opened for subscription on 05th July 2024 and closes for subscription on 09th July 2024 (both days inclusive). The basis of allotment will be finalized on 10th July 2024 and the refunds will be initiated on 11th July. In addition, the demat credits are expected to also happen on 11th July and the stock will list on 12th 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 11th July 2024 under ISIN (INE0U9101019).

Check Effwa Infra IPO allotment status