Magson Retail IPO Final Subscription Details

The IPO of Magson Retail & Distribution Ltd closed on Thursday, 27th June 2023. The IPO had opened for subscription on 23rd June 2023. Let us look at the final subscription status of Magson Retail & Distribution Ltd at the close of subscription on 27th June 2023.

A quick word on Magson Retail & Distribution Ltd and the SME IPO

Magson Retail and Distribution Ltd, is an SME IPO on the NSE which opened for subscription on 23rd June 2023. The company, Magson Retail and Distribution Ltd, was incorporated in the year 2018 and  is engaged in the business of the retail and the distribution business of gourmet, frozen foods, and specialty foods. Some of the products that the company distributes through its channels include cheese and dairy products, exotic vegetables and fruits, ambient products, and luxury chocolates. It caters to a very niche audience that is quite fastidious about its needs but not too price conscious.

Back in 2009, the idea of Magson to serve the customers with premium quality gourmet, frozen & global food products came to life with the launch of the first Magson store by Rajesh Francis and Manish Pancholi under the guidance of Raaj Maganlal. Since its inception in 2009, the brand has noticeably evolved as a very unique and one-of-a-kind specialty store. It caters to the wide-ranging needs of the customer and has emerged as a preferred choice for Frozen & Gourmet Foods by most of the customers of the city of Ahmedabad. It has over 1.50 lakh customers transaction on a regular basis.

The ₹13.74 crore IPO of Magson Retail & Distribution Ltd comprises entirely of a fresh issue of shares and there is no offer for sale component in the IPO. The total SME IPO of Magson Retail & Distribution Ltd entails the issue of 21.14 lakh shares which at the fixed issue price of ₹65 per share aggregates to ₹13.74 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 2,000 share each. Thus, the minimum investment of ₹130,000 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 4,000 shares worth ₹260,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Magson Retail & Distribution Ltd will deploy the funds for setting up new stores and for working capital needs of the company apart from general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 95.89% to 70.06%. The issue is lead managed by ISK Advisors Private 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 27th June 2023.

Final subscription status of Magson Retail & Distribution Ltd

Here is the subscription status of the Magson Retail & Distribution IPO as at close on 27th June 2023.

The issue was only open for retail investors, and for the non-institutional investors like HNI / NIIs. There was a broad quote designed for each of the segments viz. 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.

As one can see in the above table, there was no allocation made to the anchor investors and hence the entire allocation was made as spart of the public issue only; either to the retail investors or to the non-institutional investors like the HNI / NIIs.

Subscription picture of Magson Retail & Distribution Ltd IPO

The oversubscription of the IPO was fairly well spread among the HNI / NIIs and the retail investors. However, the overall subscription response to the IPO was moderate at the very best. The table below captures the day-wise progression of the subscription status of Magson Retail & Distribution Ltd IPO.

It is clear from the above table that both the retail portion and the HNI / NII portion got fully subscribed only on the second day of the IPO as did the overall subscription in the IPO. Of course, there was traction visible for retail and HNI investors on the last day, although the overall  response was still quite moderate. There is an allocation of 106,000 shares to Sunflower Broking Ltd for market making. The market maker, typically provides buy and sell quotes post listing to keep the counter liquid so that traders and investors have easy entry and exit options. The market maker operates on the bid-ask spread.

The IPO of Magson Retail & Distribution 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 06th 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.