Essen Specialty IPO: Final Subscription Update

The IPO of Essen Speciality Films Ltd closed on Tuesday, 27th June 2023. The IPO had opened for subscription on 23rd June 2023. Let us look at the final subscription status of Essen Speciality Films Ltd at the close of subscription on 27th June 2023.

A quick word on Essen Speciality Films Ltd and the SME IPO

Essen Speciality Films  Ltd, is an SME IPO on the NSE which has opened for subscription on 23rd June 2023. The company, Essen Speciality Films  Ltd, was incorporated in the year 2002. It manufactures and exports specialized plastic products predominantly in the home furnishing and the home improvement segments. Its main customers are the multinational retail outlets like IKEA, Wal-Mart, Kmart, Kohl, Kroger, and Bed, Bath & Beyond. Its products are varied and it offers bath area accessories, artificial plants and flowers, storage, and organization units as well as utility products.

The products manufactured by Essen Speciality Films Ltd have a diverse customer base across a gamut of industry groups. They comprise departmental stores, discount stores, retailers, hypermarkets, home improvement stores etc. It also supplies directly to select global importers and exporters. It currently services clients in more than 24 geographies which include China, UK, Saudi Arabia, US, Qatar, Germany, Italy, Canada, New Zealand, Spain, Belgium, Austria, Mexico and many more. It has the recognition of a two-star export house by the government of India and also has several accolades to its credit.

The ₹66.33 crore of Essen Speciality Films IPO comprises of a fresh issue and an offer for sale. The total SME IPO of Essen Speciality Films Ltd entails issue of 61.992 lakh shares at which at the upper band of the price range at ₹107 per share aggregates to ₹66.33 crore. The stock has a face value of ₹10 and retail bidders and the pricing has been fixed in the band of ₹101 to ₹107 per share. Retail investors can bid in minimum lot size of 1,200 shares each. Thus, the minimum investment of ₹128,400 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 ₹256,800 as the bare minimum investment. There is no upper limit for the HNI / NII category. Essen Speciality Films Ltd will deploy the funds for prepayment of certain borrowings availed by the company and also for working capital needs of the company apart from general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 100.00% to 70.00%. The issue is lead managed by GYR Capital Advisors Ltd, while Bigshare Services Private Ltd will be the registrars to the issue. Let us now turn to the final subscription details of the IPO as of the close of subscription on 27th June 2023.

Final subscription status of Essen Speciality Films Ltd

Here is the subscription status of the Essen Speciality Films Ltd IPO as at close on 27th June 2023.

The issue was open for retail investors, QIBs and for the HNI / NIIs. There was a broad quote designed for each of the segments viz. the QIBs, the retail and the HNI NII. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

As can be seen in the table above a total of 17.652 lakh shares were issued to the anchor investors. These anchor investors constituted 28.47% of the total issue size of the IPO and was worth ₹18.89 crore. Given below the list of anchor investors and the number of shares they took up.

Break-up of subscriptions for the Essen Speciality Films Ltd SME IPO

The oversubscription of the IPO was dominated by the HNI / NIIs followed by the retail investors and the QIB investors in that order. The table below captures the day-wise progression of the subscription status of Essen Speciality Films Ltd IPO.

It is clear from the above table that while the retail portion and the QIB portion got fully subscribed on the first day of the IPO itself, the HNI / NII portion got fully subscribed only on the second day. However, the overall IPO was fully subscribed on the first day itself although most of the traction was seen on the last day. All the 3 categories of investors viz., HNIs / NIIs, retail and QIB categories saw good traction and build up of interest on the last day of the IPO. There is an allocation of 310,800 shares to SMC Global Securities Ltd for market making, which has been included in the HNI / NII quota.

The IPO of Essen Speciality Films Ltd opened for subscription on 23rd June 2023 and closed for subscription on 27th Jun e2023 (both days inclusive). The basis of allotment will be finalized on 03rd July 2023 and the refunds will be initiated on 04th July 2023. In addition, the demat credits are expected to happen on 05th July 2023 and the stock is scheduled to list on 06th July 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.