C P S Shapers IPO Final Subscription Status

The IPO of C P S Shapers Ltd closed on Thursday, 31st August 2023. The IPO had opened for subscription on 29th August 2023. Let us look at the final subscription status of C P S Shapers Ltd at the close of subscription on 31st August 2023. It was a fixed price IPO with the price of the IPO already fixed at ₹185 per share. The stock has a face value of ₹10 per share and the stock is proposed to be listed on the SME Emerge segment of the National Stock Exchange (NSE), which is the segment on the NSE that typically incubates such start-ups and prepares them for full membership of stock exchange mainboard.

About the C P S Shapers IPO

The ₹11.10 crore of C P S Shapers IPO comprises entirely of a fresh issue of shares with no offer for sale (OFS) component in the IPO. The Fresh Issue of shares by C P S Shapers Ltd entails the issue of 6 lakh shares which at the fixed IPO price of ₹185 per share aggregates to ₹11.10 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also be the total size of the IPO. Therefore, the overall size of the IPO of C P S Shapers Ltd will also entail the issue of 6 lakh shares which at the fixed IPO price level of ₹185 per share aggregates to ₹11.10 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 600 share each. Thus, the minimum investment of ₹111,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs / NIIs can invest in a minimum of 2 lots of 1,200 shares worth ₹222,000 as the bare minimum investment. There is no upper limit for the HNI / NII category or even for the QIB category. C P S Shapers Ltd will deploy the funds for purchase of plant and machinery, procuring commercial vehicles capex funding for solar power systems and for loan repayment and for fixing working capital funding gaps. Post the IPO, the promoter equity in the company will get diluted from 99.8% to 71.29%. The issue is lead managed by Shreni Shares Private Ltd, while Bigshare Services Private Ltd will be the registrars to the issue. Let us now turn to the final subscription details of the IPO as of the close of subscription on 31st August 2023.

Final subscription status of C P S Shapers IPO

Here is the subscription status of the C P S Shapers IPO as at close on 31st August 2023.

The issue was open for retail investors, QIBs and for the HNI / NIIs. There was a broad quota designed for the retail and the non-retail. The non-retail quota permitted HNI / NIIs and the QIBs to invest in the IPO. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO. A total of 31,200 shares were allocated as market maker portion to Shreni Shares Private Ltd, which will act as a 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. Here is how the allocation was done for the IPO across market, retail, and non-retail.

As can be seen, from the above table, the company has not made any allocation to the anchor investors, with no quota anyways dedicated to the QIB investors. Nearly 5.20% of the issue was reserved for the market makers, to provide buy and sell two-way quotes to ensure liquidity in the counter after listing. The market makers offer liquidity on both sides and reduce the basis risk in the counter. The balance shares were divided among the retail investors; and the non-retail investors comprising predominantly the HNI / NII investor category and to a lesser extent the QIBs. Since there was no anchor allocation in the IPO, there was no anchor bidding one day prior to the opening of the IPO.

How subscription built up for the IPO of C P S Shapers Ltd

The oversubscription of the IPO was dominated by the retail investors, followed by the QIB investors and the HNI / NII investors in that order. The table below captures the day-wise progression of the subscription status of C P S Shapers Ltd IPO. This is as of the close of each of the IPO days, as reported to the stock exchanges.

It is clear from the above table that both the retail portion and the HNI / NII portion got fully subscribed on the first day of the IPO itself. As a result, even the overall IPO got comfortably oversubscribed on the first day of the IPO itself. However, both the retail and the HNI / NII segment built up most of the heft on the last day of the IPO, which is August 31st, 2023 . Both the segments saw strong traction on the last and final day of the IPO i.e., on August 31st, 2023. The HNI / NII portion sees the funding applications and the corporate applications come in on the last day. While the subscription of HNI / NII portion grew over 6-fold on Day-3 of the IPO over Day-2 close, the growth was just about 3 times for the retail investor portion. The overall IPO saw 4-fold growth between the second day and the third day of the IPO. There is an allocation of 31,200 shares to Shreni Securities Private Ltd for market making. The market maker offers two way quotes on the stock post listing using the inventory of shares and ensures that investors do not get overly worried about liquidity and basis risk in the early stages.

The IPO of C P S Shapers Ltd opened for subscription on 29th August 2023 and closed for subscription on 31st August 2023 (both days inclusive). The basis of allotment will be finalized on 05th September 2023 and the refunds will be initiated on 06th September 2023. In addition, the demat credits are expected to happen on 07th September 2023 and the stock is scheduled to list on 08th September 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.

A quick word on C P S Shapers Ltd and the SME IPO

C P S Shapers Ltd was incorporated in 2012, to engage in manufacture of Shapewear for Men and Women. C P S Shapers Ltd manufactures and sells Shapewear for men and women through its brands “Dermawear” and the company currently sells the products via offline and online channels.  C P S Shapers Ltd has a very wide product portfolio, which includes saree shapewear, mini shaper, sports bra, Mini corsets, tummy reducers, Active Pants, Denim, Mask, and other shapewear. The company boasts of a pan-India presence and its distributor network is spread across 28 states and 8 Union territories in India. It also exports to 5 countries; including Canada, Germany, Australia, UK, and the US. While the company has its manufacturing unit located at Meerut in Uttar Pradesh; its warehousing facilities are located at Palghar in Maharashtra, and Tirupur in Tamil Nadu.

As of date, the company has over 50 products in its catalogue, more than 6,000 retail presence counters, over 10 online sales channels, established presence in omnichannel selling as well as a strong presence in 6 countries. The corporate intent was to create a forward-looking brand that combines innovative designs with functionality and comfort. The idea is to feel comfortable and confident in their body. The journey began when Dermawear introduced a range of stockings and shapewear, revolutionizing the way people perceive body shaping and support garments. Today, the product portfolio of CPR Shapers Ltd includes a wide array of meticulously crafted shapewear and athleisure clothing, catering to diverse body types and fashion preferences.

C P S Shapers Ltd was promoted by Abhishek Kamal Kumar and Rajendra Kumar. Promoter holding in the company currently stands at 99.80%. However, post the fresh issue of shares and the OFS, the promoter equity holding share will reduce to 71.29%. Allowing public float of over 25% is an essential precondition of listing. The fresh issue funds will be used by the company for purchase of plant & machinery, purchase of commercial vehicles, capex for solar power systems, IT upgradation, repayment of loans and funding of working capital gaps. While Shreni Shares Private Ltd will be the lead manager and market maker to the issue, Bigshare Services Private Ltd will be the registrar to the issue.