Spectrum Talent Management IPO: Final Subscription Status

Spectrum Talent Management IPO closed on Wednesday, 14th June 2023. The IPO had opened for subscription on 09th June 2023. Let us look at the final subscription status of Spectrum Talent Management IPO at the close of subscription on 14th June 2023.

A quick word on Spectrum Talent Management Ltd and the SME IPO

Spectrum Talent Management Ltd, is an SME IPO on the NSE which opened for subscription on 09th June 2023 and closed on 14th June 2023. The company, Spectrum Talent Management Ltd, was incorporated in 2012 to provide high quality human resource and staffing services to institutions and companies on an outsourced basis. Spectrum Talent Management Ltd boasts of over 275 corporate and institutional clients served over the years; both in the domestic and the offshore market. The company currently employs more than 15,600 personnel deployed across various locations of its clients.

The company was promoted by two veterans of the staffing and HR services space; Vidur Gupta and Sidharth Agarwal; sharing a combined experience of more than 28 years in the particular HR vertical. In terms of its service offerings, Spectrum Talent Management Ltd offers an array of services across payroll, recruitment, onboarding, and facilitating flexible staffing. The business model of Spectrum Talent Management Ltd  is aimed at satisfying the staffing, and recruitment needs of clients with their specialized knowledge, domain skills and their networks spread across the industry, domestically and globally. It is a very niche offering with very little by way of direct competition.

The ₹105.14 crore IPO of Spectrum Talent Management Ltd comprises of a fresh issue and an offer for sale in the price band of ₹169 to ₹173. The total SME IPO of Spectrum Talent Management Ltd entails issue of 60.776 lakh shares which at the upper band of the price range at ₹173 per share aggregates to ₹105.14 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 800 share each. Thus, the minimum investment of ₹138,400 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 1,600 shares worth ₹276,800 as the bare minimum investment. There is no upper limit for the HNI / NII category. Spectrum Talent Management Ltd will deploy the funds for working capital needs of the company and for related acquisitions in complementary areas. Post the IPO, the promoter equity in the company will get diluted from 100.00% to 72.25%. The issue is lead managed by Sarthi Capital Advisors Private Ltd, while Skyline Financial 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 14th June 2023.

Final subscription status of Spectrum Talent Management Ltd

Here is the subscription status of the Spectrum Talent Management Ltd IPO as at close on 14th June 2023.

The issue was only 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.

It may be noted that the company did not allocate any shares to the anchor investors, as is the norm in many of the IPO. Hence the entire issue size of 60.776 lakh shares has been accounted for in the above table as break-up. In the above list, the market maker quota is for giving buy and sell two-way quotes on the stock post listing to ensure liquidity in the counter. The market maker share allocation is normally carved out of the HNI / NII quota and in this case Rikhav Securities will act as the market maker for the SME IPO.

The oversubscription of the IPO was dominated by the retail 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 Spectrum Talent Management Ltd IPO.

It is clear from the above table that while the QIB portion got fully subscribed on the first day of the IPO itself, the HNI / NII portion got fully subscribed only on the third day and the retail portion on the second day. However, the overall IPO was fully subscribed on the second 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. There is an allocation of 304,000 shares to Rikhav Securities for market making, which has been included in the HNI / NII quota.

The IPO of Spectrum Talent Management Ltd opened for subscription on 09th June 2023 and closed for subscription on 14th June 2023 (both days inclusive). The basis of allotment will be finalized on 19th June 2023 and the refunds will be initiated on 20th June 2023. In addition, the demat credits are expected to happen on 21st June 2023 and the stock is scheduled to list on 22nd June 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.