Falcon Technoprojects IPO Subscription Status

Tanushree Jaiswal

Last Updated: 21st June 2024 - 08:03 pm

Falcon Technoprojects India - IPO Subscription Status on Day-3

As of 5.10 pm on 21st June 2024, out of the 14.136 lakh shares on offer in the IPO (excluding the market maker portion), Falcon Technoprojects India saw bids for 940.02 lakh shares. This implies an overall subscription of 66.50X at a macro level. The granular break-up of subscriptions as of the close of the Day-3 of the Falcon Technoprojects IPO was as under:

QIBs (Not Applicable)

HNI / NII (45.39X)

Retail (87.61X)

The subscriptions were led by the retail investors followed by the HNI / NII investors in that order. Since there is no QIB quota in this IPO, 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. 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. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Investor Category	Subscription (times)	Shares Offered	Shares Bid For	Total Amount (₹ in Crore)
Market Makers	1.40	74,400	1,04,000	0.96
HNIs / NIIs	45.39	7,06,800	3,20,80,800	295.14
Retail Investors	87.61	7,06,800	6,19,21,200	569.68
Total	66.50	14,13,600	9,40,02,000	864.82

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 the close of trading on June 21, 2024, the subscription to the IPO has already closed, and the subscription numbers you see above are the final numbers as of the close of the IPO on Friday.

The stock of Falcon Technoprojects India has a face value of ₹10 per share and it is a fixed price issue; priced at ₹92 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 (INE0PQK01013).

Falcon Technoprojects India - IPO Subscription Status on Day-2

As of 5.10 pm on 20th June 2024, out of the 14.136 lakh shares on offer in the IPO (excluding the market maker portion), Falcon Technoprojects India saw bids for 98.736 lakh shares. This implies an overall subscription of 6.98X at a macro level. The granular break-up of subscriptions as of the close of Day-2 of the Falcon Technoprojects IPO was as under:

QIBs (Not Applicable)

HNI / NII (1.76X)

Retail (12.21X)

The subscriptions were led by the retail investors followed by the HNI / NII investors in that order. Since there is no QIB quota in this IPO, 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. 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. Here are the details of the category-wise subscription. The overall subscription excludes the anchor portion.

Investor Category	Subscription (times)	Shares Offered	Shares Bid For	Total Amount (₹ in Crore)
Market Makers	1.40	74,400	1,04,000	0.96
HNIs / NIIs	1.76	7,06,800	12,43,200	11.44
Retail Investors	12.21	7,06,800	86,30,400	79.40
Total	6.98	14,13,600	98,73,600	90.84

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.

Falcon Technoprojects IPO has a face value of ₹10 per share and it is a fixed price issue; priced at ₹92 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 (INE0PQK01013).

Falcon Technoprojects India – Share Allocation Across Categories

The stock of Falcon Technoprojects India has a face value of ₹10 per share and it is a fixed price issue; priced at ₹92 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 (INE0PQK01013).

The table below captures the break-up of the overall share allocation to retail investors and to the HNI / NII investors. There is no QIB quota in this IPO, and 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.

Investor Category	Shares Allocated in the IPO
Market Maker Shares	74,400 shares (5.00% of total issue size)
QIB Shares Offered	There is no dedicated QIB allocation quota
NII (HNI) Shares Offered	7,06,800 shares (47.50% of total issue size)
Retail Shares Offered	7,06,800 shares (47.50% of total issue size)
Total Shares Offered	14,88,000 shares (100.00% of total issue size)

Data Source: Company RHP

There is no QIB allocation in this IPO and hence there is no anchor portion carved out. The issue size, net of the market maker quota, has been divided equally between the retail investors and the HNI / NII investors.

Falcon Technoprojects India IPO - Day-1 Subscription at 2.15 times

As of 5.17 pm on 19th June 2024, out of the 14.136 lakh shares on offer in the IPO (excluding the market maker portion), Falcon Technoprojects India saw bids for 30.372 lakh shares. This implies an overall subscription of 2.15X at a macro level. The granular break-up of subscriptions as of the close of the Day-1 of the IPO of Falcon Technoprojects India was as under:

QIBs (Not Applicable)

HNI / NII (0.49X)

Retail (3.81X)

The subscriptions were led by the retail investors followed by the HNI / NII investors in that order. Since there is no QIB quota in this IPO, 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. 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. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Investor Category	Subscription (times)	Shares Offered	Shares bid for	Total Amount (₹ in Crore)
Market Makers	1.40	74,400	1,04,000	0.96
HNIs / NIIs	0.49	7,06,800	3,43,200	3.16
Retail Investors	3.81	7,06,800	26,94,000	24.78
Total	2.15	14,13,600	30,37,200	27.94

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.

Falcon Technoprojects India – Share Allocation Across Categories

Investor Category	Shares Allocated in the IPO
Market Maker Shares	74,400 shares (5.00% of total issue size)
QIB Shares Offered	There is no dedicated QIB allocation quota
NII (HNI) Shares Offered	7,06,800 shares (47.50% of total issue size)
Retail Shares Offered	7,06,800 shares (47.50% of total issue size)
Total Shares Offered	14,88,000 shares (100.00% of total issue size)

Data Source: Company RHP

About the Falcon Technoprojects India IPO

The stock of Falcon Technoprojects India has a face value of ₹10 per share and it is a fixed price issue. The fixed price for the IPO has been set at ₹92 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of Falcon Technoprojects India has only a fresh issue component and no 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, Falcon Technoprojects India will issue a total of 14,88,000 shares (14.88 lakh shares), which at the upper band IPO price of ₹92 per share aggregates to fresh fund raising of ₹13.69 crore. Since there is no OFS, the fresh issue size will also double as the overall issue. Therefore, the overall IPO size will also comprise of the issue of 14,88,000 shares (14.88 lakh shares) which at the upper band IPO price of ₹92 per share will aggregate to overall IPO size of ₹13.69 crore.

Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 74,400 shares as quota for market inventory. Nikunj Stock Brokers 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 Bharat Parihar and Sheetal Parihar. The promoter holding in the company currently stands at 84.20%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 60.81%. The fresh issue funds will be used by the company for meeting the working capital needs of the company as part of its regular operations. A small part of the IPO proceeds has also be set aside for general corporate purposes. Kunvarji Finstock Private Ltd will be the lead manager to the issue, and KFIN Technologies Ltd will be the registrar to the issue. The market maker for the issue is Nikunj Stock Brokers Ltd. The IPO of Falcon Technoprojects India will be listed on the SME IPO segment of the NSE.

Next Steps in the Falcon Technoprojects India 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. Falcon Technoprojects India will test the appetite for service stocks in India. The credits to the demat account to the extent of shares allotted will happen by the close of 25th June 2024 under ISIN (INE0PQK01013).

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