Sadhav Shipping IPO Allotment Status

Quick take on Sadhav Shipping IPO

The stock of Sadhav Shipping Ltd has a face value of ₹10 per share and it is a fixed price issue. The price for the issue is set at ₹95 per share. Being a fixed price issue, there is no question of price discovery involved in the process. The IPO of Sadhav Shipping Ltd has only a fresh issue component and no offer for sale (OFS) portion. The fresh issue portion is EPS dilutive and equity dilutive, but OFS is just a transfer of ownership and  hence it is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Sadhav Shipping Ltd will issue a total of 40,18,800 shares (40.188 lakh shares), which at the fixed IPO price of ₹95 per share aggregates to fresh fund raising of ₹38.18 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also double up as the overall IPO size. 

Therefore, the overall IPO size will also comprise of the issue of 40,18,800 shares (40.188 lakh shares) which at the fixed IPO price of ₹95 per share will aggregate to overall IPO size of ₹38.18 crore. Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,02,800 shares. Sunflower Broking Private Ltd will be the market maker to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing.

The promoter stake in Sadhav Shipping Ltd currently stands at 96.44%, which will get diluted to 69.44% post the IPO. The fresh issue funds will be used by the company for part funding capex to purchase additional boats / vessels, repayment, or prepayment of high cost loans and for working capital needs. ISK Advisors Private Ltd will be the lead manager to the issue, and Maashitla Securities Private Ltd will be the registrar to the issue. The market maker for the issue is Sunflower Broking Private Ltd.

How to check allotment status of Sadhav Shipping IPO?

How to check the allotment status. Since this is an NSE SME IPO, there is no facility to check on the exchange website and BSE only offers allotment status for the mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can check your allotment status directly on the website of the IPO registrar, Maashitla Securities Private Limited. Here are the steps that you need to follow to check allotment status.

Checking the allotment status on the website of Maashitla Securities Private Ltd (Registrar to IPO)

Visit the Maashitla Securities Private Limited (IPO registrar to Sadhav Shipping Ltd website for IPO status by clicking on the link below:

https://maashitla.com/allotment-status/public-issues

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there is also a way to access this page via the home page of Maashitla Securities Private Ltd by clicking on the “Allotment Status” link displayed prominently on the home page. It all works the same.

This dropdown will show the active IPOs and also the IPOs that are being managed by the registrar but not yet active. However, you can access the online allotment status only after the allotment status is finalized for Sadhav Shipping Ltd. At that point, you can go and select the company Sadhav Shipping Ltd from the drop down box. The allotment status will be finalized on 28th February 2024, so in this case, you can access the details on the registrar website either late on 28th February 2024 or by middle of 29th February 2024. Once the company is selected from the dropdown box, you have 2 methods to check the allotment status for the IPO of Sadhav Shipping Ltd.  

• Firstly, you can query for the application status based on your mapped Income Tax PAN number. Once you select PAN (permanent account number) from the dropdown menu, enter your 10-digit PAN number, which is an alphanumeric code. The first 5 characters are alphabets, sixth to ninth characters are numerical while the last character is once again an alphabet. The PAN number will be available on your PAN card or on top of your income tax returns filed. Once you enter the PAN, click on the Submit Button.

• Secondly, you can also search by Beneficiary ID of your demat account. You have to then enter the combination of the DP id and the Client id as one single string. Remember that the NSDL string is alphanumeric while the CDSL string is a numeric string. Just enter the combination of DP id and customer id as it is. The details of your DP and client ID are available in your online DP statement or in the statement of account. After that you can click the Submit Button in both cases.

You can follow any of the options above. The IPO status with number of shares of Sadhav Shipping Ltd allotted will be displayed on the screen. You can save a screenshot of the screen for future reference. Once again, you can verify the demat credit by the close of 29th February 2024 or after that. These shares would be credited to your demat account under the following details (ISIN - INE0K5H01010). 

It must be noted here that, in the past, Maashitla Securities Private Ltd (the registrar to the issue) was also offering the facility to query on allotment status based on application number / CAF number. That has now been discontinued and applicants in the IPO can now only query by either the Income Tax PAN number or the demat account number. The query facility by application number / CAF number is no longer available and therefore the investors can now check the online allotment status only based on the PAN query or the DP account query.

How allocation quota and subscription impact basis of allotment?

Here is a quick look at how the allocation was made across different categories of investors. This is the first factor that impacts the investor’s chances of allotment in the IPO.

You can check the number of shares available for your specified quota which gives an idea of the chances of allotment at the outset itself. The response to the IPO of Sadhav Shipping Ltd was relatively strong and it was subscribed 135.69X overall at the close of bidding on 27th February 2024 with the Retail segment seeing 65.52 times subscription and the HNI / NII portion seeing 184.58 times subscription. There was no QIB quota in the IPO of Sadhav Shipping Ltd. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 27th February 2024.

The oversubscription numbers are exclusive of the market maker portion, which is intended to provide liquidity with low bid-ask spreads for the investors.

Next steps after the closure of the IPO of Sadhav Shipping Ltd

With the IPO closed for subscription at the end of 27th February, 2024, 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 28th February, 2024 and the refunds will be initiated on 29th February, 2024. In addition, the demat credits are also expected to happen on 29th February, 2024 and the stock is scheduled to list on 01st March 2024 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The demat credits to the demat account to the extent of allotment will happen by the close of 29th February 2024 under ISIN Number (INE0K5H01010).

The NSE SME segment is the place where the start-ups and young companies get listed, as opposed to the regular mainboard segment. The high level of subscription in the IPO reduces the chances of getting allotment in the IPO, but one has to now wait for the basis of allotment to be finalized. Then the above process flow can be used to check the status.