Macobs Technologies IPO Subscription Status

Macobs Technologies IPO - Day-3 Subscription at 202.39 times

As of 7.25 pm on 19th July 2024, out of the 20.208 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Macobs Technologies saw bids for 4,089.86 lakh shares. This implies an overall subscription of 202.39X at a macro level at the close of Day-3 of the Macobs Technologies IPO. 

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 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 19th, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is updated as of the end of Day-3 of the IPO, which was the last day of the IPO. The table above represents the final subscription for the IPO at the close of the last day. The QIB and the HNI / NII categories see the best momentum 

Macobs Technologies IPO - Day-2 Subscription at 10.34 times

As of 5.15 pm on 18th July 2024, out of the 20.208 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Macobs Technologies saw bids for 209.01 lakh shares. This implies an overall subscription of 10.34X at a macro level at the close of Day-2 of the Macobs Technologies IPO. 

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 19th, 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 the company 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 ₹71 to ₹75 per share. The final price discovery will happen in the above price band only. The issue closes for subscription on 19th July 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 23rd July 2024 under ISIN (INE0R0J01010).

Macobs Technologies  - IPO subscription Status on Day-1

As of 5.12 pm on 16th July 2024, out of the 20.208 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Macobs Technologies saw bids for 57.552 lakh shares. This implies an overall subscription of 2.85X 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 IPO of Macobs Technologies along with the overall picture was as under.

The subscriptions were led by the retail investors followed by the QIB investors and then by the HNI / NII 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 Macobs Technologies IPO is open up to July 19th, 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.

Macobs Technologies – 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 SKI Capital Services Private Ltd as the market maker and assigned a market making inventory of 1,31,200 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 15, 2024, the company made an anchor allocation of 4,43,200 shares to anchor investors at a price of ₹75 per share. This included the par value of ₹10 per share and premium of ₹65 per share. The total size of the anchor allocation was ₹3.32 crore.

The anchor allocation was done across 3 anchor investors at the upper end of the price band at ₹75 per share. These 3 major anchor investors included NAV Capital VCC – NAV Emerging Star Fund (33.57%), Astorne Capital VCC - Arven (33.21%), and J4S Venture Fund-I (33.21%). There were no other anchor investors allotted shares in the pre-IPO anchor bidding on July 15, 2024.

Out of the total anchor allocation of ₹3.32 crore, a total of 50% of the allocation will have a 1-month lock in up to August 21, 2024 and the balance 50% will have a 3-month lock-in up to October 20, 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 28.49% to 11.41%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About the IPO of Macobs Technologies

The stock of the company 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 ₹71 to ₹75 per share. The final price discovery will happen in the above price band only. The IPO of Macobs Technologies 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, Macobs Technologies will issue a total of 25,95,200 shares (25.95 lakh shares approximately), which at the upper band IPO price of ₹75 per share aggregates to fresh fund raising of ₹19.46 crore. Since there is no offer for sale, the fresh issue will also double up as the overall size of the IPO.

Read more about Macobs Technologies IPO

Therefore, the overall IPO size will also comprise of the issue of 25,95,200 shares (25.95 lakh shares approximately) which at the upper band IPO price of ₹75 per share aggregates to overall IPO size of ₹19.46 crore. 
Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 1,31,200 shares as quota for market inventory. SKI Capital Services 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 Shivam Bhateja, Dushyant Gandotra, and Divya Gandotra.

The promoter holding in the company currently stands at 65.00%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 47.78%. The fresh issue funds will be used by the company for customer acquisition, repayment of debt and for working capital requirements of the business. A small part of the IPO proceeds has also be set aside for general corporate purposes. SKI Capital Services Ltd will be the lead manager to the issue, and Maashitla Securities Private ltd will be the registrar to the issue. The market maker for the issue is SKI Capital Services Ltd. The IPO of Macobs Technologies will be listed on the SME IPO segment of the NSE.

Next Steps in the Macobs Technologies IPO process

The issue opened for subscription on 16th July 2024 and closes for subscription on 19th July 2024 (both days inclusive). The basis of allotment will be finalized on 22nd July 2024 and the refunds will be initiated on 23rd July 2024. In addition, the demat credits are expected to also happen on 23rd July 2024 and the stock will list on 24th July 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 23rd July 2024 under ISIN (INE0R0J01010).