Vinsys IT Services IPO Final Subscription Status

The IPO of Vinsys IT Services Ltd closed on Thursday, 04th August 2023. The IPO had opened for subscription on 01st August 2023. Let us look at the final subscription status of Vinsys IT Services Ltd at the close of subscription on 04th August 2023. The price band for the IPO was fixed at ₹121 to ₹128 and the stock has a face value of ₹10.

About the Vinsys IT Services Ltd IPO

The ₹49.84 crore IPO of Vinsys IT Services Ltd comprises entirely of a fresh issue with no offer for sale (OFS) component. The Fresh Issue portion of Vinsys IT Services Ltd entails the issue of 38.94 lakh shares at which at the upper band of the price range at ₹128 per share aggregates to ₹49.84 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 ₹128,000 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 2,000 shares worth ₹256,000 as the bare minimum investment. There is no upper limit for the HNI / NII category or even for the QIB category. Vinsys IT Services Ltd will deploy the funds for working capital needs and for extending loans to subsidiaries as well as general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 92.74% to 68.13%. The issue is lead managed by Beeline Capital Advisors Private Ltd, while Link Intime India 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 04th August 2023.

Final subscription status of Vinsys IT Services Ltd

Here is the subscription status of the Vinsys IT Services Ltd IPO as at close on 04th 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. A total of 1,95,000 shares were allocated as market maker portion to Sunflower Broking Ltd, which will act as a market maker to provide bid-ask liquidity on the counter post listing. Market maker action not only improves liquidity in the counter but also reduces the basis risk.

As can be seen, from the above table, the company had allocated 28.45% 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 ₹128 per share. Out of the 11.08 lakh shares allocated under the anchor portion, Zinnia Global Fund PCC was allocated 36.10% of the anchor portion while Minerva Venture Funds was allocated 22.74% and LSRD Securities Private Ltd was allocated 17.60%. Of the balance, Rajasthan Global Securities Ltd got 9.12% of the anchor allocation while VPK Global Ventures Fund was allocated 7.22% and Negen Undisovered Value Fund was also allocated 7.22%. The anchor portion is adjusted to the overall QIB quota.

How subscription built up for the IPO of Vinsys IT Services 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 Vinsys IT Services 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 even as the QIB portion saw flows bunched on the last 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 195,000 shares to Sunflower Broking Ltd 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 Vinsys IT Services Ltd opened for subscription on 01st August 2023 and closed for subscription on 04th August 2023 (both days inclusive). The basis of allotment will be finalized on 09th August 2023 and the refunds will be initiated on 10th August 2023. In addition, the demat credits are expected to happen on 11th August 2023 and the stock is scheduled to list on 14th 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 Vinsys IT Services Ltd and the SME IPO

Vinsys IT Ltd, is an SME IPO on the NSE which opened for subscription on 01st August 2023. Vinsys IT Ltd, was incorporated in 2008 to provide IT skill development solutions. The company is engaged in offering packages for IT training, IT skill development, IT skill upgradation in line with changing demands, as well as certification domain. It operates through a network of 8 entities and has a strong presence in India and also abroad. Its foot print is very strong in the Middle East and in the US. It also offers mid-end and high-end digital learning courses.

Vinsys IT Services Ltd is an ISO 9001:2015 certified organization and also a globally acclaimed individual and corporate training provider. The company already has a legacy of empowering professionals with knowledge for more than 15 years. Till date, the company has successfully trained and certified more than 600,000 professionals around the world. Vinsys IT Services Ltd has spread its wings across the globe and has footprints in countries including Australia, China, India, Kenya, Malaysia, Oman, Singapore, Tanzania, UAE, and the US. Vinsys IT Services Ltd conducts corporate training and open house workshops in Information Technology, IT Service Management, IT Governance, IT Infrastructure, Project Management, and Management Solutions.