Medicamen Organics IPO Subscription Status

Tanushree Jaiswal

Last Updated: 26th June 2024 - 10:19 am

Medicamen Organics (NSE-SME IPO) - Day-3 Subscription at 993.64 times

As of 6.58 pm on 25th June 2024, out of the 20.52 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Medicamen Organics saw bids for 20,389.52 lakh shares. This implies an overall subscription of 993.64X 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 Medicamen Organics IPO was as under:

QIBs (173.03X)

HNI / NII (1,344.22X)

Retail (1,309.77X)

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 the anchor portion and also the market making portion in the IPO.

Investor Category	Subscription (times)	Shares Offered	Shares Bid For	Total Amount (₹ in Crore)
Market Maker	1.00	1,72,000	1,72,000	0.58
Anchor Quota	1.00	8,76,000	8,76,000	2.98
QIB Investors	173.03	5,84,000	10,10,52,000	343.58
HNIs / NIIs	1,344.22	4,40,000	59,14,56,000	2,010.95
Retail Investors	1,309.77	10,28,000	1,34,64,44,000	4,577.91
Total	993.64	20,52,000	2,03,89,52,000	6,932.44

Data Source: NSE

The IPO is open until 25th June 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. The IPO has closed for subscription and the table above represents the final subscription 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 Medicamen Organics has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹32 to ₹34 per share. The issue closed for subscription on 25th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 27th June 2024 under ISIN (INE0PE401018).

Medicamen Organics IPO - Day-2 Subscription at 197.39 times

As of 5.31 pm on 24th June 2024, out of the 20.52 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Medicamen Organics saw bids for 4,050.52 lakh shares. This implies an overall subscription of 197.39X 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 Medicamen Organics IPO was as under:

QIBs (1.42X)

HNI / NII (125.05X)

Retail (339.69X)

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.

Investor Category	Subscription (times)	Shares Offered	Shares Bid For	Total Amount (₹ in Crore)
Market Maker	1.00	1,72,000	1,72,000	0.58
Anchor Quota	1.00	8,76,000	8,76,000	2.98
QIB Investors	1.42	5,84,000	8,28,000	2.82
HNIs / NIIs	125.05	4,40,000	5,50,24,000	187.08
Retail Investors	339.69	10,28,000	34,92,00,000	1,187.28
Total	197.39	20,52,000	40,50,52,000	1,377.18

Data Source: NSE

The IPO is open up to June 25, 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 Medicamen Organics has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹32 to ₹34 per share. The issue closes for subscription on 25th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 27th June 2024 under ISIN (INE0PE401018).

Medicamen Organics IPO (Day-1 Subscription at 43.63 times)

As of 5.17 pm on 21st June 2024, out of the 20.52 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Medicamen Organics saw bids for 895.20 lakh shares. This implies an overall subscription of 43.63X 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 Medicamen Organics was as under:

QIBs (1.01X)

HNI / NII (33.31X)

Retail (72.25X)

Investor Category	Subscription (times)	Shares Offered	Shares Bid For	Total Amount (₹ in Crore)
Market Maker	1.00	1,72,000	1,72,000	0.58
Anchor Investors	1.00	8,76,000	8,76,000	2.98
QIB Investors	1.01	5,84,000	5,92,000	2.01
HNIs / NIIs	33.31	4,40,000	1,46,56,000	49.83
Retail Investors	72.25	10,28,000	7,42,72,000	252.52
Total	43.63	20,52,000	8,95,20,000	304.37

Data Source: NSE

The IPO is open up to June 25, 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.

Medicamen Organics IPO – 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 Giriraj Stock Broking Private Ltd as the market maker and assigned a market making inventory of 1,72,000 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.

Category of Investors	Shares Allocated in the IPO
Market Maker Shares	1,72,000 shares (5.55% of total issue size)
Anchor Portion Allocation	8,76,000 shares (28.26% of total issue size)
QIB Shares Offered	5,84,000 shares (18.84% of total issue size)
NII (HNI) Shares Offered	4,40,000 shares (14.19% of total issue size)
Retail Shares Offered	10,28,000 shares (33.16% of total issue size)
Total Shares Offered	31,00,000 shares (100.00% of total issue size)

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 June 20, 2024, the company made an anchor allocation of 8,76,000 shares to anchor investors at a price of ₹34 per share. This included the par value of ₹10 per share and premium of ₹24 per share. The total size of the anchor allocation was ₹2.98 crore.

The anchor allocation was done across 2 anchor investors at the upper end of the price band at ₹34 per share. These 2 major anchor investors included Rajasthan Global Securities Private Ltd (50.68%), and SB Opportunities Fund - I (49.32%). There were no other anchor investors allotted shares in the pre-IPO anchor bidding on June 20, 2024.

Out of the total anchor allocation of ₹2.98 crore, a total of 50% of the allocation will have a 1-month lock in up to July 26, 2024 and the balance 50% will have a 3-month lock-in up to September 24, 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 47.10% to 18.84%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About Medicamen Organics IPO

The stock of Medicamen Organics has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹32 to ₹34 per share. Being a book built issue, the final price will be discovered within this band. The IPO of Medicamen Organics 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, Medicamen Organics will issue a total of 31,00,000 shares (31.00 lakh shares), which at the upper band IPO price of ₹34 per share aggregates to fresh fund raising of ₹10.54 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 31,00,000 shares (31.00 lakh shares) which at the upper band IPO price of ₹34 per share will aggregate to overall IPO size of ₹10.54 crore.

Read more about Medicamen Organics IPO

Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 1,72,000 shares as quota for market inventory. The market maker will be Giriraj Stock Broking Private Ltd. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs. The company has been promoted by Bal Kishan Gupta. The promoter holding in the company currently stands at 81.21%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 59.69%. The fresh issue funds will be used by the company for expenses towards registration of products in the international markets, plant update to improve production capacity, and funding part of the working capital needs. GYR Capital Advisors 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 Giriraj Stock Broking Ltd. The IPO of Medicamen Organics will be listed on the SME IPO segment of the NSE.

Next Steps in the Medicamen Organics IPO process

The issue opened for subscription on 21st June 2024 and closes for subscription on 25th June 2024 (both days inclusive). The basis of allotment will be finalized on 26th June 2024 and the refunds will be initiated on 27th June 2024. In addition, the demat credits are expected to also happen on 27th June 2024 and the stock will list on 28th June 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 27th June 2024 under ISIN (INE0PE401018).