Vilin Bio Med IPO: Closing Subscription Details

The IPO of Vilin Bio Med Ltd closed on Wednesday, 21st June 2023. The IPO had opened for subscription on 16th June 2023. Let us look at the final subscription status of Vilin Bio Med Ltd at the close of subscription on 21st June 2023.

A quick word on Vilin Bio Med Ltd and the SME IPO

Vilin Bio Med IPO, is an SME IPO on the NSE which had opened for subscription on 16th June 2023 and closed on 21st June 2023. Vilin Bio Med Ltd, was incorporated in the year 2005 and is engaged in the domestic pharma market as a key manufacturer of pharmaceutical products. It manufactures these products and then sells them in bulk to pharma manufacturers, marketers, and traders. They actually provide the channel for sales to customers. It also outsources manufacture on behalf of major players in the pharma segment in India.

It has a fairly wide product profile comprising of oral liquids like syrups and suspensions; dry powders as well as tablets and capsules as part of its product portfolio. Both the dry powder and the capsules and tablets are manufactured in Beta and non-Beta Lactam formats. Apart from having its own manufacturing unit at Roorkee, Vilin Bio Med Ltd also has its own R&D facility in the same place. It is a small sized company with total revenues of just about ₹11.2 crore in the latest fiscal year ended March 2022.

IPO details of Vilin Bio Med Ltd

The ₹12.00 crore IPO of Vilin Bio Med Ltd comprises entirely of a fresh issue of shares. The total SME IPO of Vilin Bio Med Ltd entails the fresh issue of 40 lakh shares which at the fixed IPO price of ₹30 per share aggregates to ₹12.00 crore. The stock has a face value of ₹10 per share and retail bidders can bid in minimum lot size of 4,000 share each. Thus, the minimum investment of ₹120,000 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 8,000 shares worth ₹240,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Vilin Bio Med Ltd will deploy the funds for additional working capital needs of the company and for general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 91.45% to 64.52%. Let us now turn to the final subscription details of the IPO as of the close of subscription on 21st June 2023.

Final subscription status of Vilin Bio Med Ltd

Here is the subscription status of the Vilin Bio Med Ltd IPO as at close on 21st June 2023. At the close, the issue got subscribed 2.80 times overall.

The issue was only open for retail investors and other non-retail investors. There was a broad quota designed for each of the segments viz. the retail and the non-retail segments. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

After removing the 5% allocation to the market makers, the balance number of shares were allocated to retail and the non-retail investors. There was no anchor portion in the issue and hence no anchor allocation made. Normally, anchor portion is reduced from the QIB portion of the IPO. Vilin Bio Med Ltd has set aside 2,08,000 shares for the market maker (Rikhav Securities Ltd) for giving two way quotes post listing and ensure liquidity in the counter. This is a necessary part of any SME IPO in India.

Let us now turn to the day-wise break-up of the subscription numbers of Aatmaj Healthcare :td. The oversubscription of the IPO was dominated by the retail investors followed by the HNI / NIIs in that order; with the latter portion just about scraping through. The table below captures the day-wise progression of the subscription status of Vilin Bio Med Ltd IPO.

It is clear from the above table that while the retail portion got fully subscribed only on the second day of the IPO, the HNI / NII portion got fully subscribed only on the fourth day of the IPO, which was also the last day. Even the overall IPO was fully subscribed only on the third day, although most of the traction was seen on the last day. Both the categories of investors saw very moderate traction and build-up of interest on the last day of the IPO. At close, the NII portion was subscribed just about 1.28 times while the retail was subscribed 4.31 times resulting in overall subscription of 2.80 times.

The IPO of Vilin Bio Med Ltd opened for subscription on 16th June 2023 and closed for subscription on 21st June 2023 (both days inclusive). The basis of allotment will be finalized on 26th June 2023 and the refunds will be initiated on 27th June 2023. In addition, the demat credits are expected to happen on 29th June 2023 and the stock is scheduled to list on 30th June 2023 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.

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