Service Care IPO Closing Subscription Details

Service Care IPO closed on Tuesday, 18th July 2023. The IPO had opened for subscription on 14th July 2023. Let us look at the final subscription status of Service Care Ltd at the close of subscription on 18th July 2023.

A quick word on Service Care Ltd and the SME IPO

Service Care Ltd, is an SME IPO on the NSE which had opened for subscription on 14th July 2023. The company was incorporated in 2011, and it is engaged in offering a plethora of support services such as workspace administration services and workforce administration services across a wide range of business domains. The workspace administration service delivers professional services towards facility management; which is largely into managing the administration and the logistics flow of routine activities in any organization. The workforce management services segment offers end-to-end HRMS & HROS services, designed to solve complex HR challenges. These are largely about human resource management in organizations.

Service Care Ltd has developed deep insights into this side of the business with overall market presence for over 23 years in this particular field. The company has established its creditability with its customers and partners over the last few years. Service Care Ltd currently operates through a team of over 5,800 associates (which includes contractual employees). The clients of Service Care Ltd are spread across various verticals like engineering, education, manufacturing, infrastructure, banking, IT, healthcare, FMCG etc. it also caters to the government sector for its administration and human resource needs. The company will use the proceeds from the fresh issue to help meet working capital expenses.

The ₹20.68 crore IPO of Service Care Ltd comprises entirely of a fresh issue with no offer for sale (OFS) component. The total SME IPO of Service Care Ltd entails issue of 30.86 lakh shares which at the upper band of the price range at ₹67 per share aggregates to ₹20.68 crore. The stock has a face value of ₹10 and the price band for the book built IPO is in the range of ₹63 to ₹67 per share. retail bidders can bid in minimum lot size of 2,000 share each. Thus, the minimum investment of ₹134,000 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 4,000 shares worth ₹268,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Service Care Ltd will deploy the funds for working capital needs of the company and for creating awareness and visibility of the brands. Post the IPO, the promoter equity in the company will get diluted from 100.00% to 73.16%. The issue is lead managed by Swastika Investmart Ltd, while Integrated Registry Management Services Private Limited 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 18th July 2023.

Final subscription status of Service Care Ltd

Here is the subscription status of the Service Care Ltd IPO as at close on 18th July 2023. The IPO had allocations made to the QIB category, the retail category and also to the HNI / NII category of investors.

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.

There was no anchor allocation in the IPO of Service Care and the entire QIB portion of 2.94 lakh shares were allocate through the normal IPO route only. Normally, anchor shares are offered a day ahead of the IPO opening and such anchor allocations are reduced from the QIB quota in the IPO.

How did the IPO subscriptions evolve

The oversubscription of the IPO was dominated by the retail investors followed by the QIBs and the HNI / NIIs in that order. The table below captures the day-wise progression of the subscription status of Service Care Ltd IPO. The oversubscription as of the close of the IPO was extremely moderate.

It is clear from the above table that while the QIB portion got fully subscribed on the first day of the IPO itself, the retail portion got fully subscribed only on the second day and the HNI / NII portion got fully subscribed only on the last day of the IPO. However, the overall IPO was fully subscribed by the close of the second 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 moderate traction and build-up of interest on the last day of the IPO. There is an allocation of 156,000 shares to Rikhav Securities Ltd for market making, which has been carved out separately out of the overall IPO allocation.

The IPO of Service Care Ltd opened for subscription on 14th July 2023 and closed for subscription on 18th July 2023 (both days inclusive). The basis of allotment will be finalized on 21st July 2023 and the refunds will be initiated on 24th July 2023. In addition, the demat credits are expected to happen on 25th July 2023 and the stock is scheduled to list on 26th July 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.