Jiwanram Sheoduttrai Industries IPO Closing Subscription Details

The IPO of Jiwanram Sheoduttrai Industries Ltd closed on Tuesday, 12th September 2023. The IPO had opened for subscription on 08th September 2023. Let us look at the final subscription status of Jiwanram Sheoduttrai Industries Ltd at the close of subscription on 12th September 2023. It was a fixed price issue with the IPO priced fixed at ₹23 per share and the stock has a face value of ₹10 per share.

About the Jiwanram Sheoduttrai Industries Ltd IPO

Jiwanram Sheoduttrai Industries IPO worth ₹17.07 crore comprises entirely of a fresh issue with no offer for sale (OFS) component. The Fresh Issue portion of Jiwanram Sheoduttrai Industries Ltd entails the issue of 74.22 lakh shares which at the fixed IPO price of ₹23 per share aggregates to ₹17.07 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 6,000 share each. Thus, the minimum investment of ₹138,000 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 12,000 shares worth ₹276,000 as the bare minimum investment. There is no upper limit for the HNI / NII category or even for the QIB category. Jiwanram Sheoduttrai Industries Ltd will deploy the funds for working capital needs and for repaying some of the unsecured loans of the company.

Final subscription status of Jiwanram Sheoduttrai Industries Ltd

Here is the subscription status of the Jiwanram Sheoduttrai Industries IPO as at close on 12th September 2023. It was subscribed 112.96 times at close overall.

The issue was open for retail investors, QIBs and for the HNI / NIIs, albeit the last two being combined under the non-retail portion. 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 3,72,000 shares were allocated as market maker portion to Giriraj Stock Broking 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 has allocated 5.01% of its original issue size to the market makers and the balance has been divided between retail investors and the non-retail investors. There is no anchor quota offered in the IPO and hence there was no anchor placement of shares made a day ahead of the IPO opening.

How subscription built up for the IPO of Jiwanram Sheoduttrai Industries Ltd

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 Jiwanram Sheoduttrai Industries Ltd IPO.

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, 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 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 3,72,000 shares to Giriraj Stock Brokers 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 Jiwanram Sheoduttrai Industries Ltd opened for subscription on 08th September 2023 and closed for subscription on 12th September 2023 (both days inclusive). The basis of allotment will be finalized on 15th September 2023 and the refunds will be initiated on 18th September 2023. In addition, the demat credits are expected to happen on 20th September 2023 and the stock is scheduled to list on 21st 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 Jiwanram Sheoduttrai Industries Ltd and the SME IPO

Jiwanram Sheoduttrai Industries Ltd was incorporated in 1997. It is one of the leading manufacturers of industrial safety gloves and garments. Apart from a large domestic franchise, the company also has major export franchise. Jiwanram Sheoduttrai Industries Ltd has manufacturing units located at Baruipur, Nandankanan and at the Falta SEZ in the state of West Bengal. Its exports are predominantly head-to-toe safety wear and workwear. Its operations are divided into 3 broad verticals. Firstly, it makes industrial leather gloves including Canadian welder gloves, driver gloves and mechanical gloves. These are typically customized to the unique customer needs. Secondly, it makes industrial garments with features like fire retardant, water repellent, high visibility, oil repellent, UV protection, anti-bacterial etc; and are also largely customized. Lastly, Jiwanram Sheoduttrai Industries Ltd also manufactures work and casual wear garments for specific industries like hospitals, hotels, etc on a made-to-order basis. It has international roster of clients spread across the US, Spain, Germany, and Belgium.

Over the years, Jiwanram Sheoduttrai Industries Ltd has stamped a mark of trust on its ability to create value through consistent quality and product innovations. Its distribution scale has deep spread at a domestic and global level. The company is a government recognized Star Export House for the manufacture and export of work and safety wear. The manufacturing operations of the company take care of all the requisite value chain steps in-house. Thus procuring & inspecting the raw materials, segregating the raw materials, manufacturing products based on customer specifications, control & product quality assurance as well as the packaging and distribution of the finished products are done in-house to ensure total control over the timing, inventory timing and quality of the full value chain from procurement of raw materials to delivery of the end product to the customer.

The company has been promoted by Alok Prakash, Anupama Prakash, Gyan Prakash and Alok Prakash HUF. The promoter holding in the company currently stands at 100.00%. However, post the fresh issue of shares promoter equity share will reduce to 70.00%. The fresh issue funds will be used by the company for meeting its working capital funding gaps and for repayment of unsecured loans availed by the company. Part of the funds raised will also go towards general corporate expenses. While Affinity Global Capital Markets Private Ltd will be the lead manager to the issue, Cameo Corporate Services Ltd will be the registrar to the issue. The market maker for the issue is yet to be officially announced.