Oriana Power IPO Final Subscription Status

The IPO of Oriana Power Ltd closed on Thursday, 03rd August 2023. The IPO had opened for subscription on 01st August 2023. Let us look at the final subscription status of Oriana Power Ltd at the close of subscription on 03rd August 2023. The price band for the IPO was fixed at ₹115 to ₹118 and the stock has a face value of ₹10.

About the Oriana Power IPO

The ₹59.66 crore IPO of Oriana Power Ltd comprises entirely of a fresh issue with no offer for sale (OFS) component. The Fresh Issue portion of Oriana Power Ltd entails the issue of 50.556 lakh shares at which at the upper band of the price range at ₹118 per share aggregates to ₹59.66 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 1,200 share each. Thus, the minimum investment of ₹141,600 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs / NIIs can invest in a minimum of 2 lots of 2,400 shares worth ₹283,200 as the bare minimum investment. There is no upper limit for the HNI / NII category or even for the QIB category. Oriana Power Ltd will deploy the funds for working capital needs of the company and for investment in key subsidiaries. Post the IPO, the promoter equity in the company will get diluted from 83.40% to 61.41%. The issue is lead managed by Corporate Capital Ventures Private Ltd, while Skyline Financial 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 03rd August 2023.

Final subscription status of Oriana Power Ltd

Here is the subscription status of the Oriana Power Ltd IPO as at close on 03rd August 2023.

The issue was open for retail investors, QIBs and for the HNI / NIIs. There was a broad quota 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, from the above table, the company had allocated 28.48% of its original issue size to anchor investors. The anchor allotment was done on 31st July 2023 and details and the anchor allocation was spread across 6 anchor investors. All the anchor allocation was done at the upper end of the price band at ₹118 per share. Out of the 14.40 lakh shares allocated under the anchor portion, LSRD Securities was allocated 29.08% of the anchor portion while Rajasthan Global Securities Private Ltd was allocated 23.92% and Morgan Stanley Asia and India Ahead Venture Fund were allocated 14.75% and 14.50% respectively. Of the balance, Meru Investment Fund got 11.83% of the anchor allocation while Aryabhata Global Assets Fund was allocated 5.92%. The anchor portion is adjusted to the overall QIB quota.

How subscription built up for the IPO of Oriana Power Ltd

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 Oriana Power Ltd IPO.

It is clear from the above table that while the retail portion and the HNI / NII portion got fully subscribed on the first day of the IPO itself, the QIB portion got fully subscribed only on the second day as did the QIB portion achieve the targets on the last 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 255,600 shares to Share India Securities  for market making. The market maker offers two way quotes on the stock post listing using the inventory of shares and ensures that investors do not get overly worried about liquidity and basis risk in the early stages.

The IPO of Oriana Power Ltd opened for subscription on 01st August 2023 and closed for subscription on 03rd August 2023 (both days inclusive). The basis of allotment will be finalized on 08th August 2023 and the refunds will be initiated on 09th August 2023. In addition, the demat credits are expected to happen on 10th August 2023 and the stock is scheduled to list on 11th August 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.

A quick word on Oriana Power Ltd and the SME IPO

Oriana Power Ltd, is an SME IPO on the NSE which has opened for subscription on 01st August 2023 and has closed for subscription on 03rd August 2023. The company, Oriana Power Ltd, was incorporated in in the year 2013 to provide total solar energy solutions. These services are offered to commercial and industrial customers customized to their specific needs and requirements. This not only is what the world is moving towards but presence in the alternate energy also enhances the valuation of companies.

Oriana Power Ltd offers low carbon energy solutions to its customers which include on-site solar project installation, rooftop and ground mounted system, and off-site solar farms. Oriana Power Ltd has a capex arm and also a services arm. The capex arm handles the engineering, procurement, construction (EPC) as well as the operation of solar projects. The services arm offers solar energy solutions on a Build, Own, Operate and Transfer (BOOT) model, or other similar such models used in infrastructure projects.