Woman Cart IPO Subscribed at 67.48 times

About the WomenCart IPO

WomanCart IPO opened for subscription on 16th October 2023 and closed for subscription on 18th October 2023. The IPO is a fixed price IPO where the stock of WomanCart Ltd has a face value of ₹10 per share and the issue price for the fixed price IPO has been set at ₹86 per share. The IPO of WomanCart Limited has a fresh issue component and no offer for sale (OFS) portion in the IPO. As part of the fresh issue portion of the IPO, WomanCart Limited will issue a total of 11,12,000 shares (11.12 lakhs), which at the fixed IPO price of ₹86 per share aggregates to a total fresh issue size of ₹9.56 crore. Since, there is no OFS component, the total issue size will also comprise the issue of 11,12,000 shares (11.12 lakhs), which at ₹86 per share, also aggregates to total issue size of ₹9.56 crore.

The minimum lot size for the IPO investment will be 1,600 shares. Thus, retail investors can invest a minimum of ₹137,600 (1,600 x ₹86 per share) in the IPO. That is also the maximum that the retail investors can invest in the IPO. HNI / NII investors can invest a minimum of 2 lots comprising of 3,200 shares and having a minimum lot value of ₹2,75,200. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for. Like any SME issue, WomanCart Ltd will also have a market maker quota allocation of 56,000 shares. The market maker is Nikunj Stock Brokers Ltd and will provide two-way quotes to ensure liquidity on the counter post listing and low basis costs. Post the issue, the stake of the promoter, Veena Pahwa, will dilute from 78.01% to 57.40%. The fresh funds will be used for expenses of branding and marketing as well as for the expenses of app development and working capital needs. Narnolia Financial Services Ltd will be the lead manager to the issue and Maashitla Securities Private Ltd will be the registrar to the issue.

Final subscription status of WomenCart IPO

Here is the subscription status of the WomenCart IPO as at close on 18th October 2023.

As can be seen from the above table, the overall IPO of WomenCart Ltd got subscribed an impressive 67.48 times. The retail portion led the stakes with 71.94 times subscription, followed by the HNI / NII portion at 56.30 times subscription. That is a very strong and smart response to an SME IPO, especially if you consider the median subscriptions that similar other SME IPOs have got in the past.

Allocation quota for various categories

The issue was open for retail investors, and the non-retail investors. Typically, the non-retail investors predominantly comprise of the HNI / NII category. There was a broad quota designed for each of the segments viz. 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 56,000 shares were allocated as market maker portion to Nikunj Stock Brokers Ltd, which will act as market maker inventory 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.

The anchor allotment is normally done a day ahead of the IPO opening. However, in the case of the Committed Cargo Care Ltd IPO, they had not allotted any specific QIB quota. The company also did not do any anchor placement ahead of the IPO opening. The only allocation done was the 5.04% of the total equity being allocated to the market makers of the IPO to provide buy and sell bid/ask spreads for the stock post listing. The net issue (net of the market maker quota) was distributed equally between the retail portion and the HNI / NII portion.

How subscription built up for the WomenCart IPO

The oversubscription of the IPO was dominated by the Retail category followed by the HNI / NII category in that order. The table below captures the day-wise progression of the subscription status of WomenCart Ltd IPO.

Here are the key takeaways from the subscription numbers on a day-wise basis for WomanCart Ltd.

• The retail portion got the best subscription in the WomanCart Ltd IPO and it got 8.39 times subscribed on the first day itself.
   
• The HNI / NII portion was behind the retail portion in terms of subscription and it got 1.67 times subscribed at the end of the first day.
   
• With the retail and HNI / NII portion getting fully subscribed on the first day of the IPO itself, even the overall IPO got fully subscribed at 5.03 times at the close of the first day of the IPO itself.
   
• The retail and the HNI portion saw the best traction on the last day of the IPO. The HNI portion saw the total subscription ratio moving from 6.32X to 56.30X on the last day of the IPO. Even the retail portion saw the total subscription ratio move from 22.35X to 71.94X on the last day of the IPO.
   
• Just as the retail portion and the HNI portion saw the best incremental traction on the last day of the IPO, the overall IPO also saw smart traction on the last day with the subscription ratio for the overall IPO moving from 15.34X to 67.48X on the last day.

With the IPO closed for subscription at the end of October 18, 2023, the next piece of action shifts to the finalization of the basis of allotment and later to the listing of the IPO. The basis of allotment will be finalized on 23rd October 2023 while the refunds would be initiated on 25th October 2023. The shares of WomanCart Ltd (ISIN - INE0Q9601016) would be credited to the demat accounts of eligible shareholders by the close of 26th October 2023 while the stock of WomanCart Ltd is expected to be listed on 27th October 2023. The listing will happen on the NSE SME segment for small companies, which is distinct from the regular mainboard IPO space.