MCON Rasayan IPO: Final Day Subscription Status

MCON Rasayan IPO closed on Friday, 10th March 2023. The IPO had opened for subscription on 06th March 2023. Let us look at the final subscription status of MCON Rasayan IPO at the close of subscription on 10th March 2023.

A quick word on MCON Rasayan SME IPO

MCON Rasayan is headquartered in Mumbai and has its manufacturing plants based in Gujarat. It specializes in the manufacture of modern building material and construction chemicals. It sells construction chemicals in powder form as well as in liquid form with a portfolio of over 80 products. Powder products are in the form of ready-mix plaster, tile adhesives, block adhesives, wall putty, polymer mortar and micro concrete, while liquid form products include polyurethane based liquid membrane, bonding agents, and anti-corrosive coatings. The company currently has 2 manufacturing plants located in the industrial townships of Valsad and Navsari in south Gujarat. Both these plant sites have an installed capacity of 2,500 MTPA and 12,500 MTPA respectively. Some of the marquee clients of MCON Rasayan include Runwal group, Lodha group, Rustomjee group, DB Realty, and the Indian Railways. First, a quick look at the IPO details.

The Rs6.84 crore IPO of MCON Rasayan India Ltd comprises entirely of a fresh issue. The total SME IPO of MCON Rasayan India Ltd entails issue of 17.10 lakh shares at a fixed price of Rs40 per share aggregating to Rs6.84 crore. The stock has a face value of Rs10 and retail bidders can bid in minimum lot size of 3,000 share each. Thus, the minimum investment of Rs120,000 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 6,000 shares worth Rs240,000 as the bare minimum investment. There is no upper limit. MCON Rasayan India Ltd will deploy the funds for working capital needs of the company and general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 91.45% to 66.64%. The issue is lead managed by GYR Capital Advisors Limited, while Link Intime India Private Limited will be the registrars to the issue. Let us not turn to the final subscription details.

Final subscription status of MCON Rasayan IPO

Here is the subscription status of the MCON Rasayan Ltd IPO as at close on 10th March 2023.

The issue was only open for retail investors and for the HNI / NIIs. There was no quota for the QIBs in the SME IPO of MCON Rasayan Ltd. The subscription was dominated by the retail investors followed closely behind by the HNI / NII segment. Here is the day-wise progression of the subscription status of MCON Rasayan Ltd IPO.

It is clear from the above table that most of the subscription did come in on the last day of the IPO across categories. However, from the first day itself, the IPO of MCON Rasayan Ltd was comfortably oversubscribed. Let us finally look at how the distribution of the IPO across classes happened

In the above table, you will find the total number of shares lower than the number of shares issued in the IPO, but that gap is on account of the allocation of shares for market making, which is the difference.

The issue opened for subscription on 06th March 2023 and closed for subscription on 10th March 2023 (both days inclusive). The basis of allotment will be finalized on 15th March 2023 and the refunds will be initiated on 16th March 2023. In addition, the demat credits are expected to happen on 17th March 2023 and the stock is scheduled to list on 20th March 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.