Akanksha Power IPO subscribed 117.39 times

About the Akanksha Power and Infrastructure IPO

The stock of Akanksha Power and Infrastructure Ltd has a face value of ₹10 per share and it is a book building issue priced in the band of ₹52 to ₹55 per share. The IPO of Akanksha Power and Infrastructure Ltd has only a fresh issue component and no offer for sale (OFS). As part of the fresh portion of the IPO, Akanksha Power and Infrastructure Ltd will issue a total of 49,98,000 shares (49.98 lakh shares), which at the upper band IPO price of ₹55 per share aggregates to a fresh fund raising of ₹27.49 crore. As there is no OFS portion, the fresh issue size will double up as the overall IPO size.

Thus, overall IPO size will also comprise of the issue of 49,98,000 shares priced at ₹55 per share and worth ₹27.49 crore. There will be a market maker inventory allocation of 2,60,000 shares made jointly to Nikunj Stock Brokers Ltd and SS Corporate Services Ltd. The market maker will ensure liquidity and low basis costs post listing. Promoter holding in the IPO will dilute from 83.28% to 60.81% post the IPO. The IPO funds will be used for capex and working capital spending. Narnolia Financial Services  Ltd will be the lead manager to the issue, and Link Intime India Private Ltd will be the registrar to the issue.

Final subscription status of Akanksha Power and Infrastructure Ltd

Here is the subscription status of the Akanksha Power and Infrastructure Ltd as at close on 29th December 2023.

As can be seen from the above table, the overall IPO of Akanksha Power and Infrastructure Ltd got subscribed an impressive 117.39 times. The HNI / NII portion led the stakes with 238.60 times subscription, followed by the Retail portion at 110.44 times subscription. The QIB portion of the IPO also got a healthy subscription of 38.51 times. That is a very strong and smart response to an SME IPO, especially if you consider the median subscriptions that similar other SME IPOs have got in the past. The subscription has shown strong traction for the IPO across all the three categories of investors; QIB, retail and HNI / NII investors.

Allocation quota for various categories

The issue was open for retail investors and the HNI / NII investors. There was a broad quota designed for each of the segments viz. the retail, and the HNI / NII segments. A total of 2,60,000 shares were allocated as market maker portion to Nikunj Stock Brokers Ltd and SS Corporate Securities Ltd, which will act as market maker inventory to provide bid-ask liquidity on the counter post listing. Market maker action not only improves liquidity in the counter but also reduces the basis risk. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

In the above IPO of Akanksha Power and Infrastructure Ltd, the anchor allocation of 14,18,000 shares was carved out of the QIB portion, as a result of which the QIB offer to the public reduced from the original 47.34% of the issue size to 18.97% of the issue size. The anchor allocation bidding opened on December 26, 2023 and also closed on the same day. A total of 14,18,000 shares were allocated across 4 anchor investors. The anchor allocation was done at the upper end of the IPO price band of ₹55 per share. The total anchor allocation value was worth ₹7.80 crore.

The anchor allottees included LC Radiance Fund VCC (28.21%), Resonance Opportunities Fund (25.67%), Moneywise Financial Services (24.96%), and Nexus Global Opportunities Fund (21.16%). These 4 anchor investors accounted for the entire 100% of the anchor allocation. Out of the anchor shares allocated to investors on December 26, 2023, a lock in of 30 days will be applicable for 50% of the shares (up to February 13, 2024) and a lock-in of 90 days will be applicable for the remaining shares (up to May 15, 2024). The allocation of market maker inventory of 5.20% is outside the anchor portion.

How subscription built up for the IPO of Akanksha Power and Infrastructure Ltd

The oversubscription of the IPO was dominated by the HNI / NII followed by the Retail category and the QIB category in that order. The table below captures the day-wise progression of the subscription status of Akanksha Power and Infrastructure Ltd. The IPO was kept open for 3 working days.

Here are the key takeaways from the subscription numbers on a day-wise basis for Akanksha Power and Infrastructure Ltd.

• The HNI / NII portion got the best subscription in the Akanksha Power and Infrastructure Ltd IPO at 238.60 times and it got 1.75 times subscribed on the first day of the IPO itself.
   
• The Retail portion was behind the HNI / NII portion in terms of subscription at 110.44 times overall and it got 3.95 times subscribed at the end of the first day.
   
• The QIB portion was third in the pecking order in terms of subscription at 38.51 times overall and it got 7.00 times subscribed at the end of the first day.
   
• With the QIB, retail and HNI / NII portion getting fully subscribed on the first day of the IPO itself, even the overall subscription was filled up on the first day itself. The overall IPO which saw subscription of 117.39 times also got fully subscribed at 4.35 times at the close of the first day of the IPO itself.
   
• The retail, and HNI / NII portion saw the best traction on the last day of the IPO. The HNI / NII portion saw the total subscription ratio moving from 16.49X to 238.60X on the last day of the IPO. Even the retail portion saw the total subscription ratio move from 27.62X to 110.44X on the last day of the IPO.
   
• The last day traction story was true for QIBs and the overall IPO also. The QIB portion saw the total subscription ratio moving from 19.76X to 117.39X on the last day of the IPO. Finally, regarding the overall IPO subscription ratio, it also moved from 146.39X to 362.28X on the last day of the IPO.

With the IPO closed for subscription at the end of December 29th, 2023, 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 01st January 2024 while the refunds would be initiated on 02nd January 2024. The shares of Akanksha Power and Infrastructure Ltd (ISIN - INE0PCY01014) would be credited to the demat accounts of eligible shareholders by the close of 02nd January 2024 while the stock of HRH Next Services Ltd is expected to be listed on 03rd January 2024. The listing will happen on the NSE SME segment for small companies, which is distinct from the regular mainboard IPO space.