Inspire Films IPO Subscribed at 129.08 times

About the Inspire Films IPO

Inspire Films IPO opened for subscription on 25th September 2023 and closed for subscription on 27th September 2023 (both days inclusive). The ₹21.23 crore IPO of Inspire Films Ltd comprises entirely of a fresh issue with no offer for sale (OFS) component. The Fresh Issue portion of Inspire Films Ltd entails the issue of 35.98 lakh shares at which at the upper band of the price range at ₹59 per share aggregates to ₹21.23 crore. The stock has a face value of ₹10 and the price band for the IPO is between ₹54 and ₹59 per share. Retail bidders can bid in minimum lot size of 2,000 share each. Thus, the minimum investment of ₹118,000 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 4,000 shares worth ₹236,000 as the bare minimum investment. There is no upper limit for the HNI / NII category or even for the QIB category. Inspire Films Ltd will deploy the funds for working capital needs and for general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 93.98% to 39.17%. The issue is lead managed by Narnolia Financial Services Ltd, while Maashitla Securities Private Ltd will be the registrars to the issue.

Final subscription status of Inspire Films IPO

Here is the subscription status of the Inspire Films IPO as at close on 27th September 2023.

As can be seen from the above table, the overall IPO of Inspire Films got subscribed 129.08 times. The Retail portion led the stakes with 180.41 times subscription, followed by the HNI / NII portion at 147.16 times and the QIBs at 25.27 times. That is a very good response to an SME IPO, especially if you consider the median subscriptions that similar other SME IPOs have got in the past.

Allocation quota for various categories

The issue was open for retail investors, QIBs and for the HNI / NIIs. There was a broad quota 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. A total of 1,80,000 shares were allocated as market maker portion to Share India Securities Ltd, which will act as a market maker 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.

As can be seen, from the above table, the company had allocated 10.22 lakh shares or 28.42% of the original issue size to anchor investors. The anchor allotment was done a day ahead of the IPO opening and the entire anchor allocation was spread across 3 anchor investors. The anchor allocation was done at the upper end of the price band at ₹59 per share.

How subscription built up for the Inspire Films IPO

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

It is clear from the above table that while the retail portion and the HNI / NII portion got fully subscribed on the first day of the IPO itself, and even the QIB portion got fully subscribed on the first day of the IPO itself. However, all the 3 categories saw bunching of flows on the last day of the IPO. The overall IPO was also fully subscribed on the first day itself although most of the traction was seen on 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.  Post the IPO listing, the market maker will offer two way quotes on the stock, using the inventory of shares, and ensure that investors do not have to worry about liquidity and basis risk. The basis of allotment will be finalized on 04th October 2023 while the stock is expected to be listed on 06th October 2023.