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Tunwal E-Motors IPO Subscription Status on Day-1 at 1.95 Times

As of 5.05 pm on 15th July 2024, out of the 186.20 lakh shares on offer in the IPO (excluding the market maker portion), Tunwal E-Motors saw bids for 362.24 lakh shares. This implies an overall subscription of 1.95X at a macro level. The granular break-up of subscriptions as of the close of the first day of the Tunwal E-Motors IPO was as follows:

The subscriptions were led by the retail investors followed by the HNI / NII investors in that order. Since there is no QIB quota in this IPO, the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Data Source: NSE

The IPO is open up to July 18, 2024, at which point we will know the final subscription status of the IPO. As of today, the above table is representative of the subscription status of the company at the close of Day-1 of the IPO.

Tunwal E-Motors IPO - Share Allocation Across Categories

The table below captures the break-up of the overall share allocation to retail investors and to the HNI / NII investors. The anchor allotment is carved out of the QIB quota (if any) and the QIB quota is reduced accordingly. The market maker allocation is the inventory that will be used by the market maker to provide liquidity in the counter post listing, to keep the bid-ask spreads low and reduce the risks of trading in the stock. The company has appointed Nikunj Stock Brokers Ltd and Giriraj Stock Broking Private Ltd as the joint market makers for the issue and assigned a market making inventory of 9,80,000 shares to them. The market maker will use this inventory to offer buy and sell quotes to keep the counter liquid and reduce the basis risk on the stock post listing.

Data Source: Company RHP

In the above IPO of Tunwal E-Motors, there is no dedicated QIB allocation in the IPO. The anchor allocation to the anchor investors is normally carved out of this QIB allocation and hence the company has not done any anchor allocation in the IPO. Normally, the anchor is done to institutional investors, which gives confidence and assuranc