Cell Point (India) IPO: Final Subscription Status

The IPO of Cell Point IPO closed on Tuesday, 20th June 2023. The IPO had opened for subscription on 15th June 2023. Let us look at the final subscription status of Cell Point (India) Ltd at the close of subscription on 20th June 2023.

A quick word on Cell Point (India) Ltd and the SME IPO

Cell Point IPO on the NSE which opened for subscription on 15th June 2023. Here is a quick background. Cell Point (India) Ltd is one of the largest retail outlets for mobile phones and electronic accessories in the Southern part of India. The company was incorporated in 2001, and offers a combination of physical and virtual platform for multi-brand retailing. It currently sells smart phones, tablets, mobile accessories, and mobile-related products. In terms of brands sold, Cell Point India sells products manufactured by the who’s who of the mobile hardware space including marquee names like Apple, Samsung, Oppo, Realme, Nokia, Vivo, Xiaomi, Redmi, and Oneplus.

While mobile phones are the driving engine for the company, it is also engaged in multi-brand retailing of other consumer durable electronics like Smart TVs of brands like Xiaomi, Realme, and One Plus. The company has over 75 stores across the state of Andhra Pradesh and is headquartered in the port city of Visakhapatnam. It is strategically positioned as a one-stop shop for all mobile related needs. Cell Point (India) Ltd will use the fresh funds raised in the IPO for repayment of borrowings and for repairs and renovation of existing retail outlets. The issue is lead managed by First Overseas Capital Ltd while Bigshare Services Private Limited will be the registrars to the IPO.

IPO size and lot size for Cell Point (India) Ltd

The ₹50.34 crore IPO of Cell Point (India) Ltd comprises entirely of a fresh issue of shares to the public. The total SME IPO of Cell Point (India) Ltd entails a fresh issue to the tune of 50.34 lakh shares at which at the fixed IPO price of ₹100 per share aggregates to ₹50.34 crore. The fresh issue will result in dilution of equity and EPS of the company. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 1,200 share each. Thus, the minimum investment of ₹120,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs can invest in 2 lots of 2,400 shares worth ₹240,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Cell Point (India) Ltd will deploy the funds for repayment of debt and for deployment in rebranding new stores. Post the IPO, the promoter equity in the company will get diluted from 100.00% to 73.06%. The issue is lead managed by First Overseas Capital 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 20th June 2023.

Final subscription status of Cell Point (India) Ltd

Here is the subscription status of the Cell Point (India) Ltd IPO as at close on 20th June 2023.

The issue was only open for retail investors and for non-retail investors in general. There was a broad quote designed for each of the segments. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

The above table accounts for the complete and total 50.34 lakh shares which is also the total issue size in the IPO. That is because there was no anchor allotment done and as is the norm the market maker shares of 5% was carved out of the total equity and the balance was equally allocated to the retail and the non-retail investors. The issue was a fixed price issue with the IPO price being fixed at ₹100 prior to the IPO itself. Let us not turn to the day-wise oversubscription build up in the case of Cell Point (India) Ltd IPO.

The oversubscription of the IPO was moderate overall but the retail captured a bigger chunk of the oversubscription in the issue compared to the non-retail category. The table below captures the day-wise progression of the subscription status of Cell Point (India) Ltd IPO.

It is clear from the above table that while the NII / HNI portion got fully subscribed on the first day of the IPO itself, the retail portion got fully subscribed only on the second day. However, the overall IPO got fully subscribed on the first day of the 4-day IPO itself. Both the categories of investors viz., HNIs / NIIs and retail saw moderate traction and build-up of interest on the last day of the IPO. There is an allocation of 252,000 shares to NNM Securities Ltd for market making, which has been carved out separate from the HNI and retail quota in the issue break-up.

The IPO of Cell Point (India) Ltd opened for subscription on 15th June 2023 and closed for subscription on 20th June 2023 (both days inclusive). The basis of allotment will be finalized on 23rd June 2023 and the refunds will be initiated on 26th June 2023. In addition, the demat credits are expected to happen on 27th June 2023 and the stock is scheduled to list on 29th June 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.