VELS Film International IPO: Final Subscription Status

VELS Film International IPO closed on Tuesday, 14th March 2023. The IPO had opened for subscription on 10th March 2023. Let us look at the final subscription status of VELS Film International IPO at the close of subscription on 14th March 2023.

A quick word on VELS Film International Ltd and the SME IPO

VELS Film International Ltd, is an SME IPO on the NSE which opened for subscription on 10th March 2023 and has closed on 14th March 2023. VELS Film International is primarily engaged in the business of production of films and the sale of film rights. The company was promoted by Dr. Ishari Ganesh to institutionalize cinema in the South, which has India’s second largest and the third largest cinema volumes. Some of their popular movies are Mookuthi Amman, Kutty Story, Sumo, Joshua Imai Pol Kaakha, Vendhu Thanindhathu Kaadu. It has a strong team of experienced directors and a management team to handle growth. Assured revenue streams from the sale of movie rights, merchandise, franchises etc is a big edge for VELS Film International. IPO funds will be used for production of new films and corporate purposes.

The IPO of VELS Film International Ltd will be listed on the SME segment of the National Stock Exchange (NSE). The issue opened for subscription on 10th March 2023 and closed for subscription on 14th March 2023. The issue has been priced at Rs99 per share, which is the par value of Rs10 per share plus a premium of Rs89 per share. The company will issue 34.08 lakh shares at Rs99 per share aggregating to Rs33.74 crore. Out of the total issue size, 50% of the issue is allocated to the retail investors while the balance 50% is allocated to HNI / NII investors. The minimum lot size for the IPO investment will be 1,200 shares, so the minimum investment for retail investors is Rs118,800 while for HNI / NIIs it is Rs237,600.

Final subscription status of VELS Film International Ltd

Here is the subscription status of the VELS Film International Ltd IPO as at close on 14th 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 VELS Film International Ltd. The subscription was dominated by the HNI / NII investors with the retail portion getting marginally undersubscribed. Here is the day-wise progression of the subscription status of VELS Film International 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, although the retail portion just fell marginally short of the target fund raising, but the issue did sail through at an overall level. The overall IPO of VELS Film International Ltd came close to full subscription only towards the close of the last day of subscription, which was the 14th of March 2023. 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. In this case, a total of 172,800 shares of the IPO are reserved for the market making. For the IPO, the market maker will be SS Corporate Securities Ltd. The IPO on the SME NSE segment will be lead managed by Khambatta Securities Ltd while the registrar to the IPO would be Chennai based Cameo Corporate Services Ltd.

The issue opened for subscription on 10th March 2023 and closed for subscription on 14th March 2023 (both days inclusive). The basis of allotment will be finalized on 17th March 2023 and the refunds will be initiated on 20th March 2023. In addition, the demat credits are expected to happen on 21st March 2023 and the stock is scheduled to list on 22nd 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.