Sahana Systems IPO Final Subscription Status

Sahana Systems IPO closed on Friday, 02nd June 2023. The IPO had opened for subscription on 31st May 2023. Let us look at the final subscription status of Sahana Systems IPO at the close of subscription on 02nd June 2023.

A quick word on Sahana Systems Ltd and the SME IPO

Let us first start off with a quick background of Sahana Systems Ltd, an SME IPO on the NSE which had opened for subscription on 31st May 2023. Sahana Systems was incorporated in 2020 and is engaged in the business of offering IT-related value added services. It offers the full spectrum of IT related services including web app development, mobile app development, artificial intelligence / machine learning development (AI & ML), Chatbot development, and product prototyping. Apart from these specialized areas, Sahana Systems also specializes in user interface and in UI design. It caters to user interfaces as well as user experience or UX as is better known as.

Sahana Systems Ltd is a registered start-up as recognized by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry. This entitles the company to a host of privileges including exemption from angel tax, as and when it becomes applicable in specific cases as per the provisions of the latest Finance Bill. The funds raised through the fresh issue will be used to bankroll its installation of EV charging stations and for meeting working capital requirements.  The issue will be lead managed by Unistone Capital Private Limited and Interactive Financial Services Ltd while Purva Share Registry India Private Ltd will be the registrars to the SME IPO of Sahana Systems Ltd.

Let us now come to the specific and granular terms of the IPO. The ₹32.74 crore IPO of Sahana Systems Ltd comprises entirely of a fresh issue and there is no offer for sale component in the IPO. The total SME IPO of Sahana Systems Ltd entails issue of 24.25 lakh shares at which at the upper band of the price range at ₹135 per share aggregates to ₹32.74 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 1,000 share each. Thus, the minimum investment of ₹135,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs can invest in 2 lots of 2,000 shares worth ₹270,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Sahana Systems Ltd will deploy the funds for working capital needs of the company and for installation of EV (electrical vehicles) stations. Post the IPO, the promoter equity in the company will get diluted from 90.25% to 62.88%. The issue is lead managed by Unistone Capital Private Ltd and Interactive Financial Services Ltd, while Purva Share Registry 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 02nd June 2023.

Final subscription status of Sahana Systems Ltd

Here is the subscription status of the Sahana Systems Ltd IPO as at close on 25th May 2023.

The issue was only open for retail investors, QIBs and for the HNI / NIIs. There was a broad quote 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.

The entire quote of 24.25 lakh shares available as part of the fresh issue of shares in the IPO has been allocated as above to the QIBs, HNI / NII category and to the retail investor category. There was no anchor placement done for the issue ahead of the opening of the IPO. The entire issue size only represents what was subscribed and bid for in the IPO. Out of the total IPO, the company has allocated a total of 125,000 shares for market making and Rikhav Securities will act as the market maker. The market making portion is carved out of the HNI / NII allocation only.

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 Sahana Systems Ltd IPO.

It is clear from the above table that only the HNI / NII portion got fully subscribed on the first day of the IPO itself, while the retail portion and the QIB portion got fully subscribed only on the second day of the IPO. 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 125,000 shares to Rikhav Securities for market making, which has been included in the HNI / NII quota.

The IPO of Vasa Denticity opened for subscription on 31st May 2023 and closed for subscription on 02nd June 2023 (both days inclusive). The basis of allotment will be finalized on 07th June 2023 and the refunds will be initiated on 08th June 2023. In addition, the demat credits are expected to happen on 09th June 2023 and the stock is scheduled to list on 12th June 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.