Finelistings Technologies IPO Oversubscribed 37.44 Times

About the Finelistings Technologies IPO

The stock of Finelistings Technologies IPO has a face value of ₹10 per share and it is a fixed price issue. The price for the fixed price issue is set at ₹123 per share. The IPO of Finelistings Technologies Ltd has only a fresh issue component and no offer for sale (OFS) portion. As part of the fresh issue portion of the IPO, Finelistings Technologies Ltd will issue a total of 11,00,000 shares (11.00 lakh shares), which at the fixed IPO price of ₹123 per share aggregates to fresh fund raising of ₹13.53 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also double up as the overall IPO size. Therefore, the overall IPO size will also comprise of the issue of 11,00,000 shares (11.00 lakh shares approximately) which at the fixed IPO price of ₹123 per share will aggregate to overall IPO size of ₹13.53 crore. Finelistings Technologies Ltd is a BSE SME IPO.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 58,000 shares. Rikhav Securities Ltd will be the market maker to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The promoter holding in Finelistings Technologies IPO currently stands at 71.65%, which will get diluted post the IPO to 49.98%. The fresh issue funds will be used by the company towards the purchase of necessary software and for working capital requirements. Fedex Securities Private Ltd will be the lead manager to the issue, and Skyline Financial Services Private Ltd will be the registrar to the issue. The market maker for the issue is Rikhav Securities Ltd. The IPO of Finelistings Technologies Ltd will be listed on the SME IPO segment of the BSE.

Read more about Finelistings Technologies IPO

Final subscription status of Finelistings Technologies IPO

Here is subscription status of Finelistings Technologies IPO at close on 09th May 2024.

As can be seen from the above table, the overall IPO of Finelistings Technologies Ltd got subscribed at a modest 37.44 times. The Retail portion led the stakes with 38.96 times subscription, followed by the HNI / NII portion at 29.85 times subscription. There was no dedicated QIB allocation in this IPO. That is robust response to an SME IPO, especially if you consider the median subscriptions that similar other SME IPOs have got in the past. Also, in the current volatile market conditions, it does come across as a strong performance. The subscription saw modestly healthy traction for the IPO across both the categories of investors; retail and HNI / NII investors.

Allocation quota for various categories

The issue was open for retail investors and the HNI / NII investors. There was a broad quota designed for each of the segments viz. the retail, and the HNI / NII segments. A total of 58,000 shares were allocated as market maker portion to Rikhav Securities Ltd, which will act as market maker inventory to provide bid-ask liquidity on the counter post listing. Market maker action not only improves liquidity in the counter but also reduces the basis risk. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

In the above IPO of Finelistings Technologies Ltd, there is no dedicated QIB allocation in the IPO. The anchor allocation to the anchor investors is normally carved out of this QIB allocation and hence the company has not done any anchor allocation in the IPO. Normally, the anchor is done to institutional investors, which gives confidence and assurance to the retail shareholders about the institutional interest in the stock The anchor allocation is normally adjusted and deducted from the QIB quota and only the net number of shares is available for public issue under the QIB portion.

However, in this case, there is neither any QIB quota, nor any anchor allocation to investors ahead of the IPO. Normally, the anchor portion bidding is done on the day before the IPO opens and such anchor investments are subjected to lock in at two levels. Half the anchor allocation is locked in for 30 days while the balance anchor allocation shares are locked in for a period of 90 days. The allocation of market maker inventory of 5.27% is outside the anchor portion. The market making portion is more towards ensuring liquidity post listing and ensuring low basis spreads on the stock.

How subscription built up for the Finelistings Technologies IPO?

The oversubscription of the IPO was dominated by the HNI / NII investors followed by the Retail Investor category in that order. The table below captures the day-wise progression of the subscription status of Finelistings Technologies Ltd. The IPO was kept open for 3 working days.

Here are the key takeaways from the subscription numbers on a day-wise basis for Finelistings Technologies Ltd.

• The Retail portion got the best subscription in the Finelistings Technologies Ltd IPO at 38.96 times and it got 3.29 times subscribed on the first day of the IPO itself.
   
• The HNI /NII portion was behind the HNI / NII portion in terms of subscription at 29.85 times overall and it got 0.60 times subscribed at the end of the first day.
   
• Thanks to the robustness of the retail portion, the overall IPO also got fully subscribed on the first day  of the IPO itself. The overall IPO, which saw subscription of 37.44 times at close, and got fully subscribed at 1.94 times at the close of the first day.
   
• The HNI / NII portion saw the best traction on the last day of the IPO. The HNI / NII portion saw the total subscription ratio moving from 2.20X to 29.85X on the third and final day of the IPO.
   
• Like the HNI / NII portion, even the Retail portion also saw very healthy traction on the last day of the IPO. In fact, the retail subscription ratio moved from 11.63X to 38.96X on the last day of the IPO.
   
• What about the Overall IPO. The last day story was true for the overall IPO also. On the third and final day of the IPO, the subscription ratio overall moved from 6.91X to 37.44X on the last day of the IPO.

Next steps in the IPO process

The issue opened for subscription on 07th May 2024 and closed for subscription on 09th April 2024 (both days inclusive). The basis of allotment will be finalized on 10th May 2024 and the refunds will be initiated on 13th May 2024. In addition, the demat credits are also expected to happen on 13th May 2024 and the stock is scheduled to list on 14th May 2024 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The demat credits to the demat account to the extent of allotment will happen by the close of 13th May 2024 under ISIN Number (INE0QOQ01013).