Trident Techlabs IPO Subscribed 763.30 times

About the Trident Techlabs Ltd IPO

The stock of Trident Techlabs Ltd has a face value of ₹10 per share and it is a book built issue with the booking price band fixed in the range of ₹33 to ₹35 per share. Being a book built issue, the final IPO price will be discovered within this band. The IPO of Trident Techlabs Ltd has only a fresh issue component and no offer for sale (OFS) portion. As part of the fresh portion of the IPO, Trident Techlabs Ltd will issue a total of 45,80,000 shares (45.80 lakh shares), which at the upper booking building band price of ₹35 per share aggregates to a total fund raising of ₹16.03 crore. Since there is no offer for sale (OFS) portion in the IPO, the fresh issue size will also double up as the overall size of the IPO.

Hence, the total IPO size will also comprise of the issue of 45,80,000 shares (45.80 lakh shares) which at the upper band price of ₹35 per share will aggregate to overall IPO size of ₹16.03 crore. Like every SME IPO, Trident Techlabs IPO also has a market making portion with a market maker inventory allocation of 3,60,000 shares to Giriraj Stock Broking Private Ltd. The market maker (Giriraj Stock Broking Private Ltd) will provide two-way quotes to ensure liquidity and low basis costs on the stock post listing. Post the IPO, the promoter stake will get diluted from 92.48% to 73.5%. Trident Techlabs Ltd will use the fresh funds for funding the working capital gaps. GYR Capital Advisors Private Ltd will be the lead manager to the issue, and Maashitla Securities Private Ltd will be the registrar to the issue.

Final subscription status of Trident Techlabs Ltd

Here is the final subscription status of the Trident Techlabs Ltd IPO as at close on 26th December 2023.

As can be seen from the above table, the overall IPO of Trident Techlabs Ltd got subscribed an impressive 763.30 times. The Retail portion led the stakes with 1,059.43 times subscription, followed by the HNI / NII portion at 854.37 times subscription. The QIB portion of the IPO also got a healthy subscription of 117.91 times. 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 the three categories of investors; QIB, retail and HNI / NII investors.

Allocation quota for various categories

The issue was open for retail investors and the HNI / NII investors. There was a broad quota designed for each of the segments viz. the retail, and the HNI / NII segments. A total of 3,60,000 shares were allocated as market maker portion to Giriraj Stock Broking 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.

In the above IPO of Trident Techlabs Ltd, the anchor allocation of 12,04,000 shares was carved out of the QIB portion, as a result of which the QIB offer to the public reduced from the original 43.84% of the issue size to 17.55% of the issue size. The anchor allocation bidding opened on December 20, 2023 and also closed on the same day. A total of 12,04,000 shares were allocated across 2 anchor investors. The anchor allocation was done at the upper end of the IPO price band of ₹35 per share.

The total anchor allocation value was worth ₹4.21 crore. The anchor allottees included Chhattisgarh Investments Ltd (64.12%), and Rajasthan Global Securities Private Ltd (35.88%). Out of the anchor shares allocated to investors on December 20, 2023, a lock in of 30 days will be applicable for 50% of the shares (up to February 07, 2024) and a lock-in of 90 days will be applicable for the remaining shares (up to May 01, 2024). The allocation of market maker inventory of 7.86% is outside the anchor portion.

How subscription built up for the IPO of Trident Techlabs Ltd

The oversubscription of the IPO was dominated by the Retail category followed by the HNI / NII category and the QIB category in that order. The table below captures the day-wise progression of the subscription status of Trident Techlabs Ltd. The IPO was kept open for 3 working days.

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

• The Retail portion got the best subscription in the Trident Techlabs Ltd IPO at 1,059.43 times and it got 67.20 times subscribed on the first day of the IPO itself.
   
• The HNI / NII portion was behind the Retail portion in terms of subscription at 854.37 terms overall and it got 17.05 times subscribed at the end of the first day.
   
• The QIB portion was third in the pecking order in terms of subscription at 117.91 terms overall and it got 1.05 times subscribed at the end of the first day.
   
• While the QIB, retail and HNI / NII portion getting fully subscribed on the first day of the IPO itself, even the overall subscription was filled up on the first day itself. The overall IPO which saw subscription of 763.30 times also got fully subscribed at 38.53 times at the close of the first day of the IPO itself.
   
• The 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 68.83X to 854.37X on the last day of the IPO. Even the retail portion saw the total subscription ratio move from 204.78X to 1,059.43X on the last day of the IPO.
   
• The last day traction story was true for QIBs and the overall IPO also. The QIB portion saw the total subscription ratio moving from 3.07X to 117.91X on the last day of the IPO. Finally, regarding the overall IPO subscription ratio, it also moved from 121.07X to 763.30X on the last day of the IPO.

With the IPO closed for subscription at the end of December 26th, 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 27th December 2023 while the refunds would be initiated on 28th December 2023. The shares of Trident Techlabs Ltd (ISIN - INE0QD201012) would be credited to the demat accounts of eligible shareholders by the close of 28th December 2023 while the stock of Trident Techlabs Ltd is expected to be listed on 29th December 2023. The listing will happen on the NSE SME segment for small companies, which is distinct from the regular mainboard IPO space.