Maitreya Medicare IPO Subscribed 446.79 times

About the Maitreya Medicare IPO

Maitreya Medicare IPO opened for subscription on 27th October 2023 and closed for subscription on 01st November 2023. The company has a face value of ₹10 per share and it is a book built issue with the book building price band in the range of ₹78 to ₹82 per share. The IPO of Maitreya Medicare Ltd has only a fresh issue component with no offer for sale (OFS) portion. As part of the fresh portion of the IPO, Maitreya Medicare Ltd will issue a total of 18,16,000 shares (18.16 lakhs approximately), which at the upper band IPO price of ₹82 per share aggregates to a total fresh fund raising of ₹14.89 crore. Since there is no offer for sale portion, the size of the fresh issue will also be the total size of the IPO. Hence the total IPO size will also comprise of 18,16,000 shares, which at the upper IPO price band of ₹82 per share will aggregate to ₹14.89 crore.

The minimum lot size for the IPO investment will be 1,600 shares. Thus, retail investors can invest a minimum of ₹131,200 (1,600 x ₹82 per share) in the IPO. That is also the maximum that the retail investors can invest in the IPO. HNI / NII investors can invest a minimum of 2 lots comprising of 3,200 shares and having a minimum lot value of ₹262,400. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for.  The IPO will have a market maker portion allocation of 1,08,800 shares. The market maker for the issue is Giriraj Stock Broking Private Ltd and they will provide two-way quotes to ensure liquidity and low basis costs on the counter post-listing. The promoter stake in Maitreya Medicare Ltd will get diluted from the current level of 100.00% to 73.20% post the IPO. The fresh funds will be used to invest in the equity of its subsidiary and for redemption of NCDs. GYR 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.

Final subscription status of Maitreya Medicare IPO

Here is the subscription status of the Maitreya Medicare IPO as at close on 1-Nov-2023.

As can be seen from the above table, the overall IPO of Maitreya Medicare Ltd got subscribed an impressive 446.79 times. The HNI / NII portion led the stakes with 744.03 times subscription, followed by the Retail portion at 509.40 times subscription. Even the QIB portion got subscribed an impressive 85.41 times overall. That is a very strong and smart response to an SME IPO, especially if you consider the median subscriptions that similar other SME IPOs have got in the past. The subscription has shown strong traction for the IPO across all categories of investors.

Allocation quota for various categories

The issue was open for QIBs, retail investors, and the HNI / NII investors. There was a broad quota designed for each of the segments viz. the retail, the QIB and the HNI / NII segments. A total of 2,61,600 shares were allocated as market maker portion to Hem Finlease Private Ltd, which will act as market maker inventory 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. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

The anchor allotment is normally done a day ahead of the IPO opening. In the case of Maitreya Medicare Ltd, the anchor allocation of 4.944 lakh shares comprising 27.22% of the total IPO size was done a day ahead of the IOP opening on October 26, 2023. The entire allocation was done at the upper end of the price band of ₹82 per share (which comprises of the face value of ₹10 per share and a premium of ₹72 per share). The entire anchor allocation was spread across 4 anchor investors with the overall anchor quota being divided approximately on an equal basis among the allottees. The anchor portion is carved out of the QIB portion and so the QIB quota available to the public will be reduced by the anchor size. That has been reflected in the revised allocation in the table above.

How subscription built up for the Maitreya Medicare IPO?

The oversubscription of the IPO was dominated by the HNI / NII followed by the Retail category and the QIB category in that order. The table below captures the day-wise progression of the subscription status of Maitreya Medicare Ltd. The IPO was kept open for 4 working days.

Here are the key takeaways from the subscription numbers on a day-wise basis for Maitreya Medicare Ltd.

• The HNI / NII portion got the best subscription in the Maitreya Medicare Ltd IPO at 744.03 times and it got 18.85 times subscribed on the first day of the IPO itself.
   
• The Retail portion was behind the HNI / NII portion in terms of subscription at 509.40 terms overall and it got 32.55 times subscribed at the end of the first day.
   
• While the retail and HNI / NII portion getting fully subscribed on the first day of the IPO itself, even the QIB portion got subscribed 11.55 times on the first day while the overall IPO also got fully subscribed at 23.77 times at the close of the first day of the IPO itself.
   
• The QIB, retail and HNI / NII portion saw the best traction on the last day of the IPO. The HNI / NII portion saw the total subscription ratio moving from 94.45X to 744.03X on the last day of the IPO. Even the retail portion saw the total subscription ratio move from 203.13X to 509.40X on the last day of the IPO.
   
• Just as the retail portion and the HNI portion saw the best incremental traction on the last day of the IPO, even the QIB portion saw the last day subscription jump from 25.09X to 85.41X. Similarly, even the overall IPO saw smart traction on the last day with the subscription ratio for the overall IPO moving from 130.37X to 446.79X on the last day.

With the IPO closed for subscription at the end of 01st November, 2023, the next piece of action shifts to the finalization of the basis of allotment and later to the listing of the IPO. The basis of allotment will be finalized on 06th November 2023 while the refunds would be initiated on 07th November 2023. The shares of Maitreya Medicare Ltd (ISIN - INE0PLQ01011) would be credited to the demat accounts of eligible shareholders by the close of 08th November 2023 while the stock of Maitreya Medicare Ltd is expected to be listed on 09th November 2023. The listing will happen on the NSE SME segment for small companies, which is distinct from the regular mainboard IPO space.