Sahaj Solar IPO Subscription Details

Sahaj Solar IPO - Day-2 Subscription at 96.17 times

As of 5.06 pm on 12th July 2024, out of the 19.50 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Sahaj Solar saw bids for 1,874.90 lakh shares. This implies an overall subscription of 96.17X at a macro level at the close of Day-2 of the IPO. The granular break-up of subscriptions as of the close of Day-2 of the Sahaj Solar IPO was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: NSE

The IPO is open up to July 15th, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-2 of the IPO. The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

The stock of Sahaj Solar has a face value of ₹10 per share and it is a book built issue. The book building price band for the IPO has been set in the range of ₹171 to ₹180 per share. The final price discovery will happen in the above price band only. The issue closes for subscription on 15th July 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 18th July 2024 under ISIN (INE0P4701011).

Sahaj Solar IPO - Day-1 Subscription at 40.42 times

As of 5.17 pm on 11th July 2024, out of the 19.50 lakh shares on offer in the IPO (excluding the market maker portion and the anchor allocation done), Sahaj Solar saw bids for 788.03 lakh shares. This implies an overall subscription of 40.42X at a macro level at the close of Day-1 of the IPO. The granular break-up of subscriptions as of the close of Day-1 of the Sahaj Solar IPO was as under:

The subscriptions were led by the retail investors followed by the HNI / NII investors and then by the QIB investors in that order. The QIB quota and the NII / HNI will typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of the HNI / NII bids and the QIB bids. The NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the large HNI bids come in. Even the institutional bids come in on the last day in the first half. Here are the details of the category-wise subscription. The overall subscription ratio calculation excludes anchor portion and also the market making portion in the IPO.

Data Source: NSE

The IPO is open up to July 15th, 2024, at which point we will know the final subscription status of the IPO. As of today, the status is only updated as of the end of Day-1 of the IPO. The QIB and the HNI / NII categories see the best momentum coming only on the last and final day of the IPO, while the retail investors predominate on the first two days of the IPO. The market maker portion and anchor quota are excluded for the purpose of calculating the number of times subscription to get a realistic picture of the IPO subscription story.

Sahaj Solar - Share Allocation Across Categories

The table below captures the break-up of the overall share allocation to QIBs, retail investors and to the HNI / NII investors. The anchor allotment is carved out of the QIB quota and the QIB quota is reduced accordingly. The market maker allocation is the inventory that will be used by the market maker to provide liquidity in the counter post listing, to keep the bid-ask spreads low and reduce the risks of trading in the stock. The company has appointed Aftertrade Broking Private Ltd as the market maker and assigned a market making inventory of 1,46,400 shares to them. The market maker will use this inventory to offer buy and sell quotes to keep the counter liquid and reduce the basis risk on the stock post listing.

Data Source: Company RHP / NSE

The issue size, net of the market maker quota, has been divided between the QIB investors, retail investors and the HNI / NII investors. On July 10th, 2024, the company made an anchor allocation of 8,24,000 shares to anchor investors at a price of ₹180 per share, which is the upper band price. This included the par value of ₹10 per share and premium of ₹170 per share. The total size of the anchor allocation was ₹14.83 crore.

The anchor allocation was done across 3 anchor investors at the upper end of the price band at ₹180 per share. These 3 major anchor investors included CCV Emerging Opportunities Fund-I (39.32%), Persistent India Growth Fund – Varsu India (33.69%), and Acintyo Investment Funds PCC (26.99%). There were no other anchor investors allotted shares in the pre-IPO anchor bidding on July 10th, 2024.

Out of the total anchor allocation of ₹14.83 crore, a total of 50% of the allocation will have a 1-month lock in up to August 15, 2024 and the balance 50% will have a 3-month lock-in up to October 14, 2024. The anchor portion was carved out of the QIB portion, as a result of which the QIB quota available in the IPO was reduced from 47.07% to 18.85%. The stock will list on the stock exchanges on the third working day after the closure of the IPO.

About Sahaj Solar IPO

The stock of Sahaj Solar IPO has a face value of ₹10 per share and it is a book built issue. The book building price band for the IPO has been set in the range of ₹171 to ₹180 per share. The final price discovery will happen in the above price band only. The IPO of Sahaj Solar has only a fresh issue component and no offer for sale (OFS) portion. While the fresh issue portion is EPS dilutive and equity dilutive, the OFS is just a transfer of ownership and  hence is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Sahaj Solar will issue a total of 29,20,000 shares (29.20 lakh shares), which at the upper band IPO price of ₹180 per share aggregates to fresh fund raising of ₹52.56 crore. Since there is no offer for sale, the fresh issue will also double up as the overall size of the IPO. Therefore, the overall IPO size will also comprise of the issue of 29,20,000 shares (29.20 lakh shares) which at the upper band IPO price of ₹180 per share aggregates to overall IPO size of ₹52.56 crore.

Read more about Sahaj Solar IPO

Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 1,46,400 shares as quota for market inventory. Aftertrade Broking Private Ltd will be the market maker to the IPO of the company. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs. The company has been promoted by Pramit Bharatkumar Brahmbhatt, Varna Pramit Brahmbhatt, and Manan Bharatkumar Brahmbhatt. The promoter holding in the company currently stands at 97.09%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 71.28%. The fresh issue funds will be used by the company for meeting the routine working capital requirements of the company. A small part of the funds will also be used for general corporate purposes. Kunvarji Finstock Private Ltd will be the lead manager to the issue, and KFIN Technologies Ltd will be the registrar to the issue. The market maker for the issue will be Aftertrade Broking Private Ltd. The IPO of Sahaj Solar will be listed on the SME IPO segment of the NSE.

Next Steps in the Sahaj Solar IPO process

The issue opened for subscription on 11th July 2024 and closes for subscription on 15th July 2024 (both days inclusive). The basis of allotment will be finalized on 16th July 2024 and the refunds will be initiated on 18th July 2024. In addition, the demat credits are expected to also happen on 18th July 2024 and the stock will list on 19th July 2024 on the NSE SME IPO segment. The credits to the demat account to the extent of shares allotted will happen by the close of 18th July 2024 under ISIN (INE0P4701011).


Check Sahaj Solar IPO Allotment Status