TBI Corn IPO Subscription Status

TBI Corn - IPO subscription Status on Day-3

As of 5.30 pm on 04th June 2024, out of the 31.824 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), TBI Corn saw bids for 7,360.548 lakh shares. This implies an overall subscription of 231.29X 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 IPO of TBI Corn was as under:

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 came 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 was open for subscription up to June 04, 2024, and as of the close of Tuesday, the IPO subscription for TBI Corn has been closed. As of today, the final subscription status has updated as of the end of Day-3 of the IPO; which is the IPO closing date. 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 IPO closed for subscription on 04th June 2024 and credits to the demat account to the extent of shares allotted will happen by the close of 06th June 2024 under ISIN (INE0N2D01013). The stock of TBI Corn will list on 07th June 2024 on the NSE-SME IPO segment.

TBI Corn IPO Subscription Status on Day-2

As of 5.10 pm on 03rd June 2024, out of the 31.824 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), TBI Corn saw bids for 1,737.024 lakh shares. This implies an overall subscription of 54.58X 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 IPO of TBI Corn was as under:

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 for subscription up to June 04, 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 IPO closes for subscription on 04th June 2024 and credits to the demat account to the extent of shares allotted will happen by the close of 06th June 2024 under ISIN (INE0N2D01013). The stock of TBI Corn will list on 07th June 2024 on the NSE-SME IPO segment.
 

TBI Corn IPO Subscription Status on Day-1

As of 5.10 pm on 31st May 2024, out of the 31.824 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), TBI Corn saw bids for 257.196 lakh shares. This implies an overall subscription of 8.08X 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 TBI Corn IPO 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 IPO is open up to June 04, 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.

TBI Corn 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 SS Corporate Securities Ltd as the market maker and assigned a market making inventory of 2,40,000 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.

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 May 30, 2024, the company made an anchor allocation of 13,58,400 shares to anchor investors at a price of ₹94 per share. This included the par value of ₹10 per share and premium of ₹84 per share. The total size of the anchor allocation was ₹12.77 crore.

The anchor allocation was done across 4 anchor investors at the upper end of the price band at ₹94 per share. These 4 major anchor investors included Next Orbit Ventures Fund (47.00%), Persistent Growth Fund (23.50%), India Emerging Giants Fund (19.61%), and Saint Capital Fund (9.89%). These 4 anchors accounted for 100% of the anchor allocation.

Out of the total anchor allocation of ₹12.77 crore, a total of 50% of the allocation will have a 1-month lock in up to July 05, 2024 and the balance 50% will have a 3-month lock-in up to September 03, 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 47.44% to 19.03%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About the IPO of TBI Corn

The stock of TBI Corn 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 ₹90 to ₹94 per share. Being a book built issue, the final price will be discovered within this band. The IPO of TBI Corn 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, TBI Corn will issue a total of 47,80,851 shares (47.81 lakh shares approximately), which at the upper band IPO price of ₹94 per share aggregates to fresh fund raising of ₹44.94 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 47,80,851 shares (47.81 lakh shares approximately) which at the upper band IPO price of ₹94 per share will aggregate to overall IPO size of ₹49.94 crore.

Like every SME IPO, this issue also has a market making portion. The company has set aside 2,40,000 shares as the market making inventory for the issue. SS Corporate Services Ltd has 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, post listing. The company has been promoted by Yogesh Laxman Rajhans. The promoter holding in the company currently stands at 76.65%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 57.71%. The fresh issue funds will be used by the company for the expansion of its existing unit as well as to meet its incremental working capital expenditure. A small part of the IPO proceeds has also be set aside for general corporate purposes. Swastika Investmart Ltd and Ekadrisht Capital 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 SS Corporate Services Ltd. The IPO of TBI Corn will be listed on the SME IPO segment of the NSE.

Next Steps in the TBI Corn IPO process

The issue opened for subscription on 31st May 2024 and closes for subscription on 04th June 2024 (both days inclusive). The basis of allotment will be finalized on 05th June 2024 and the refunds will be initiated on 06th June 2024. In addition, the demat credits are expected to also happen on 06th June 2024 and the stock will list on 07th 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 06th June 2024 under ISIN (INE0N2D01013).