Aelea Commodities IPO Subscription Status

Aelea Commodities IPO - Day-1 Subscription at 5.01 times

As of 5.22 pm on 12th July 2024, out of the 35.71 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Aelea Commodities saw bids for 178.74 lakh shares. This implies an overall subscription of 5.01X at a macro level at the close of Day-1 of the IPO. The granular break-up of subscriptions as of the close of Day-1 of the Aelea Commodities IPO was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and 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 and the QIB 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. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: BSE

The IPO is open up to July 15th, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-1 of the IPO. The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

Aelea Commodities – Share Allocation Across Categories

The table below captures the break-up of the overall share allocation to QIBs, retail investors and to the HNI / NII investors. The anchor allotment is carved out of the QIB quota 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 SS Corporate Services Ltd as the market maker and assigned a market making inventory of 2,68,800 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

The issue size, net of the market maker quota, has been divided between the QIB investors, retail investors and the HNI / NII investors. On July 11th, 2024, the company made an anchor allocation of 15,28,800 shares to anchor investors at the upper band price. The anchor portion was carved out of the QIB portion, as a result of which the QIB quota available in the IPO was reduced from 47.47% to 19.00%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About Aelea Commodities IPO

Aelea Commodities IPO has a face value of ₹10 per share and it is a book building issue. The price band for the book building issue is set in the range of ₹91 to ₹95 per share. The final price will be discovered in this price band only. The IPO of Aelea Commodities has only a fresh issue component and no offer for sale (OFS) component in the public issue. While the fresh issue portion is EPS dilutive and equity dilutive, OFS is just a transfer of ownership and  hence it is neither EPS dilutive nor is it equity dilutive. As part of the fresh issue portion of the IPO, Aelea Commodities will issue a total of 53,68,800 shares (53.69 lakh shares approximately), which at the upper band IPO price of ₹95 per share aggregates to fresh fund raising of ₹51.00 crore. Since there is no offer for sale, the fresh issue of shares will also double up as the total issue size. As a result, the overall IPO size will also comprise of the issue of a total of 53,68,800 shares (53.69 lakh shares approximately) which at the upper band of the IPO price at ₹95 per share will aggregate to overall IPO size of ₹51.00 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,68,800 shares. SS Corporate Securities 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 company has been promoted by Hozefa S Jawadwala, Satyanarayan Patro, Ashok Patel, Firoz Gulamhusein Hathiyari, Rashida Hozefa Jawadwala, Sonali Malla, Sumita A Patel, and Farida Firoz Hathiyari. The promoter holding in the company currently stands at 86.45%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 63.66%. The fresh issue funds will be used by the company towards setting up a new processing plant, purchase of plant & machinery for existing and new units. Part of the funds will also be used for general corporate purposes. Ekadrisht Capital 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 SS Corporate Securities Ltd. The IPO of Aelea Commodities will be listed on the SME IPO segment of the BSE.

Next Steps in the Aelea Commodities IPO Process

The issue opened for subscription on 12th July 2024 and closes for subscription on 16th July 2024 (both days inclusive). The basis of allotment will be finalized on 18th July 2024 and the refunds will be initiated on 19th July 2024. In addition, the demat credits are expected to also happen on 19th July 2024 and the stock will list on 22nd July 2024 on the BSE SME IPO segment. The credits to the demat account to the extent of shares allotted will happen by the close of 19th July 2024 under ISIN (INE0T3401029).