Greenchef Appliances IPO: Final Subscription Details

The IPO of Greenchef Appliances Ltd closed on Tuesday, 27th June 2023. The IPO had opened for subscription on 23rd June 2023. Let us look at the final subscription status of Greenchef Appliances Ltd at the close of subscription on 27th June 2023.

A quick word on Greenchef Appliances Ltd and the SME IPO

Greenchef Appliances Ltd, is an SME IPO on the NSE which is opening for subscription on 23rd June 2023. The company was incorporated in the year 2010 and is engaged actively in the manufacture of kitchen appliances under the brand name of Greenchef. Its range of products include a wide array of kitchen products including gas stoves, pressure cookers, mixer grinders, wet grinders, rice cookers, induction cooktop, and a whole range of non-stock cookware including pans, pots, and kettles.

Greenchef Appliances Ltd sells its products through offline outlets as well as through popular internet platforms like Flipkart, JioMart, Big Basket and Amazon. Apart from selling products, the company also provides its customers with after-sales services including installation, repairs, maintenance, annual contracts etc to offer the complete end-to-end solutions package to the  buyer. It sells its products offline through a network of 107 authorized dealers located in 15 different states of India. The company has 3 manufacturing facilities located in the state of Karnataka and one in the state of Himachal Pradesh.

The ₹53.62 crore of Greenchef Appliances IPO comprises entirely of a fresh issue of shares to the public and there is no offer for sale (OFS) component in the IPO. The total SME IPO of Greenchef Appliances Ltd entails the fresh issue of 61.632 lakh shares, which at the upper band of the price band of ₹87 per share aggregates to ₹53.62 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 1,600 share each. Thus, the minimum investment of ₹139,200 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 3,200 shares worth ₹278,400 as the bare minimum investment. There is no upper limit for the HNI / NII category. Greenchef Appliances Ltd will deploy the funds for capital expenditure and for installation of additional plant and machinery. Post the IPO, the promoter equity in the company will get diluted from 100% to 73.52%. The issue is lead managed by Hem Securities Ltd, while Link Intime India 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 27th June 2023.

Final subscription status of Greenchef Appliances Ltd

Here is the subscription status of the Greenchef Appliances Ltd IPO as at close on 25th May 2023.

The issue was only open for retail investors, QIBs and for the HNI / NIIs. There was a broad quote designed for each of the segments viz. the QIBs, the retail and the HNI NII. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

Since there was no anchor allocation done for the investors in the SME IPO of Greenchef Appliances Ltd, the entire allocation above constituted the total size of the IPO.

Subscription details of the Greenchef Appliances Ltd SME IPO

The oversubscription of the IPO was dominated by the HNI / NIIs followed by the retail investors and the QIB investors in that order. The table below captures the day-wise progression of the subscription status of Greenchef Appliances Ltd IPO.

It is clear from the above table that all the 3 components of the Greenchef Appliances Ltd SME IPO viz. retail portion, HNI / NII portion and the QIB portion got fully subscribed on the first day of the IPO itself. As a result, the overall IPO was also fully subscribed on the first day itself although most of the traction was seen on the third and the last day. All the 3 categories of investors viz., HNIs / NIIs, retail and QIB categories saw good traction and build up of interest on the last day of the IPO. There is an allocation of 312,000 shares to Hem Finlease for market making, which has been included in the HNI / NII quota. The purpose of the market maker is to provide buy and sell quotes on the counter post listing to ensure liquidity for ease of entry and exit from the stock.

The IPO of Greenchef Appliances Ltd opened for subscription on 23rd June 2023 and closed for subscription on 27th June 2023 (both days inclusive). The basis of allotment will be finalized on 03rd July 2023 and the refunds will be initiated on 04th July 2023. In addition, the demat credits are expected to happen on 05th July 2023 and the stock is scheduled to list on 07th July 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.