Dindigul Farm Product IPO Subscription Status

Dindigul Farm Products IPO - Day-3 Subscription at 202.42 times

As of 6.55 pm on 24th June 2024, out of the 42.90 lakh shares on offer in the BSE SME IPO (excluding the market maker portion and the anchor allocation done), Dindigul Farm Products (En Nutrica) saw bids for 8,684.00 lakh shares. This implies an overall subscription of 202.42X at a macro level at the close of Day-3 of the IPO. The granular break-up of subscriptions as of the close of Day-3 of the Dindigul Farm Products IPO was as under:

The subscriptions were led by the HNI / NII investors followed by the Retail investors. The QIB portion, net of anchor allocation, came in third place, with most of the subscription traction coming in on the last day of the IPO. The NII / HNI bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of the HNI / NII 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. The QIB bids normally pick up momentum in the first half of the last day of the IPO, which was the case here too. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion (if any) and also the market making portion in the BSE SME IPO.

Data Source: BSE

The IPO is open up to June 24, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is updated as of the close of Day-3 of the IPO and represents the final subscription figures for 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 (if any) are excluded for the purpose of calculating the number of times the IPO was subscribed; to get a realistic picture of the IPO subscription story.

The stock of Dindigul Farm Products (En Nutrica)  has a face value of ₹10 per share and it is a book building issue; priced in the band of ₹51 to ₹54 per share. The issue closes for subscription on 24th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 26th June 2024 under ISIN (INE0S6R01027).

Dindigul Farm Product - IPO subscription Status on Day-2

As of 5.21 pm on 21st June 2024, out of the 42.90 lakh shares on offer in the BSE SME IPO (excluding the market maker portion and the anchor allocation done), Dindigul Farm Product saw bids for 1,186.54 lakh shares. This implies an overall subscription of 27.66X at a macro level at the close of Day-2 of the IPO. The granular break-up of subscriptions as of the close of Day-2 of the Dindigul Farm Product IPO was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors. The QIB portion, net of anchor allocation, did not see too much traction, but that typically comes in on the last day of the IPO. The NII / HNI bids 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. 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. The QIB bids normally pick up momentum in the first half of the last day of the IPO. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion (if any) and also the market making portion in the BSE SME IPO.

Data Source: BSE

The IPO is open up to June 24, 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-2 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 (if any) are excluded for the purpose of calculating the number of times the IPO was subscribed; to get a realistic picture of the IPO subscription story.

The stock of Dindigul Farm Product has a face value of ₹10 per share and it is a book building issue; priced in the band of ₹51 to ₹54 per share. The issue closes for subscription on 24th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 26th June 2024 under ISIN (INE0S6R01027).
 

Dindigul Farm Product IPO - Day-1 Subscription at 6.11 times

As of 5:27 pm on 20th June 2024, out of the 42.90 lakh shares on offer in the BSE SME IPO (excluding the market maker portion and the anchor allocation done), Dindigul Farm Product saw bids for 262.08 lakh shares. This implies an overall subscription of 6.11X 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 Dindigul Farm Product IPO was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors. The QIB portion, net of anchor allocation, did not see too much traction, but that typically comes in on the last day of the IPO. The NII / HNI bids 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. 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. The QIB bids normally pick up momentum in the first half of the last day of the IPO. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion (if any) and also the market making portion in the BSE SME IPO.

Data Source: BSE

Dindigul Farm Product – Share allocation across categories

The table below captures the break-up of the overall share allocation to retail investors and to the HNI / NII investors. The anchor allotment is carved out of the QIB quota (if any) 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 Spread X Securities Ltd as the market maker and assigned a market making inventory of 3,26,000 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

On June 19, 2024, the company made an anchor allocation of 18,34,000 shares to anchor investors at a price of ₹54 per share. This included the par value of ₹10 per share and premium of ₹44 per share. The total size of the anchor allocation was ₹9.90 crore.

The anchor allocation of 18.34 lakh shares was done across 5 anchor investors at the upper end of the price band at ₹54 per share. These 5 major anchor investors included Next Orbit Ventures Fund (30.21%), Beacon Stone Capital VCC – Beacon Stone I (28.24%), Nova Global Opportunities Fund PCC - Touchstone (21.26%), NAV Capital VCC – NAV Capital Emerging Star Fund (10.14%), and Zinnia Global Fund PCC – Cell Dewcap Fund (10.14%). These 5 anchor investors accounted for the entire 100% of the anchor allocation ahead of the IPO.

Out of the total anchor allocation of ₹9.90 crore, a total of 50% of the allocation will have a 1-month lock-in up to July 25, 2024, and the balance 50% will have a 3-month lock-in up to September 23, 2024. 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 47.44% to 19.01%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About the Dindigul Farm Product IPO

The stock of Dindigul Farm Product 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 ₹51 to ₹54 per share. The final price will be discovered in this price band only. The IPO of Dindigul Farm Product 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, Dindigul Farm Product will issue a total of 64,50,000 shares (64.50 lakh shares), which at the upper band IPO price of ₹54 per share aggregates to fresh fund raising of ₹34.83 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 64,50,000 shares (64.50 lakh shares) which at the upper band of the IPO price at ₹54 per share will aggregate to overall IPO size of ₹34.83 crore.

Read more about Dindigul Farm Product IPO

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 3,26,000 shares. Spread X Securities 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 company has been promoted by R Rajasekaran, Rajadharshini Rajasekaran and Indrayani Biotech Ltd. The promoter holding in the company currently stands at 80.66%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 59.36%. The fresh issue funds will be used by the company towards proposed capital expenditure and also for meeting some of its working capital needs. Part of the funds will also be used for general corporate purposes. Beeline Capital Advisors Private Ltd will be the lead manager to the issue, and Link Intime India Private Ltd will be the registrar to the issue. The market maker for the issue is Spread X Securities Private Ltd. The IPO of Dindigul Farm Product will be listed on the SME IPO segment of the BSE.

Next Steps in the Dindigul Farm Product IPO process

The issue opened for subscription on 20th June 2024 and closes for subscription on 24th June 2024 (both days inclusive). The basis of allotment will be finalized on 25th June 2024 and the refunds will be initiated on 26th June 2024. In addition, the demat credits are expected to also happen on 26th June 2024 and the stock will list on 27th June 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 26th June 2024 under ISIN (INE0S6R01027).