Winsol Engineers IPO Oversubscribed 682.14 Times

About the Winsol Engineers IPO

The stock of Winsol Engineers IPO has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹71 to ₹75 per share. Being a book built issue, the final price will be discovered within this band. The IPO of Winsol Engineers Ltd has only a fresh issue component and no offer for sale (OFS) portion. As part of the fresh issue portion of the IPO, Winsol Engineers Ltd will issue 31,15,200 shares (31.15 lakh shares approximately), which at the upper band IPO price of ₹75 per share aggregates to fresh fund raising of ₹23.36 crore. Since there is no offer for sale (OFS), the fresh issue size will double up as the overall IPO size too. Hence, the overall IPO size will also comprise of the issue of 31,15,200 shares (31.15 lakh shares approximately) which at the upper band IPO price of ₹75 per share will aggregate to overall IPO size of ₹23.36 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 1,58,400 shares. Spread X Securities Private Ltd will be the market maker to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The promoter holding in the company currently stands at 100.00%; which will dilute post the IPO to 72.99%. The fresh funds will be used towards working capital requirement and for general corporate purposes. Beeline Capital Advisors 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 is Spread X Securities Private Ltd.

Read more about Winsol Engineers IPO

Final subscription status of Winsol Engineers IPO

Here is the subscription status of the Winsol Engineers IPO at the close of 09th May 2024.

As can be seen from the above table, the overall IPO of Winsol Engineers Ltd got subscribed an impressive 682.14 times. The HNI / NII portion led the stakes with 1,087.81 times subscription, followed by the Retail portion at 780.15 times subscription. The QIB portion of the IPO also got a healthy subscription of 207.23 times. That is a very strong and robust 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; with all of them well above the median figures.

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, QIB and the HNI / NII segments. A total of 1,58,400 shares were allocated as market maker portion to Spread X Securities Private Ltd, which will act as the 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.

Data Source: NSE

In the above IPO of Winsol Engineers Ltd, the anchor allocation of 8,83,200 shares was carved out of the QIB portion, as a result of which the QIB offer to the public reduced from the original 47.40% of the issue size to 19.05% of the issue size. The anchor allocation bidding opened on May 03rd, 2024 and also closed on the same day. A total of 8,83,200 shares were allocated across 6 anchor investors. The anchor allocation was done at the upper end of the IPO price band of ₹75 per share (which includes face value of ₹10 per share and premium of ₹65 per share).

The total anchor allocation value was worth ₹6.62 crore. The 6 anchor investors who got allotted the full 100% of the anchor portion included; Minerva Ventures Fund (23.91%), Negen Undiscovered Value Fund (15.22%), NAV Capital VCC – Emerging Star Fund (15.22%), Craft Emerging Market Fund (15.22%), Kingsman Wealth Fund (15.22%), and Galaxy Noble Global Opportunities Fund (15.22%). These 6 anchor investors accounted for 100% of the overall anchor allocation. Out of the anchor shares allocated to investors on May 03rd, 2024, a lock in of 30 days will be applicable for 50% of the shares (up to June 09th, 2024) and a lock-in of 90 days will be applicable for the remaining shares (up to August 08th, 2024). The allocation of market maker inventory of 5.08% is outside the anchor portion.

How subscription built up for the Winsol Engineers 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 Winsol Engineers 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 Winsol Engineers Ltd as of the close of the IPO on 09th May 2024.

• The HNI / NII portion got the best subscription in the Winsol Engineers Ltd IPO at 1,087.81 times and it got 22.78 times subscribed on the first day of the IPO itself.
   
• The Retail portion was behind the HNI / NII portion in terms of subscription at 780.15 times overall and it got 53.95 times subscribed at the end of the first day.
   
• The QIB portion was third in the pecking order in terms of subscription at 207.23 times overall and it got 1.13 times subscribed at the end of the first day.
   
• With the Retail portion, HNI / NII portion and the QIB portion getting fully subscribed on the first day of the IPO itself, the overall IPO also got fully subscribed on Day-1 itself.
   
• The overall IPO which saw subscription of 682.14 times got subscribed at 32.14 times at the close of the first day of the IPO. Let us now turn to how the last day traction on the IPO subscription played out across categories.
   
• Let us start with the HNI / NII portion. The HNI / NII portion saw the total subscription ratio moving from 202.97X to 1,087.81X on the last day of the IPO. That is a substantial amount of traction on the last day.
   
• Like the HNI / NII portion, even the retail portion saw very good traction on the last day of the IPO. On the final day of the IPO, the total subscription ratio for retail investors moved from 374.20X to 780.15X on the last day of the IPO.
   
• The strong last day traction was the case in the QIB investors also, which is natural as they see most of the flows on the last day. The QIB portion saw the total subscription ratio moving from 16.56X to 207.23X on the last day of the IPO.
   
• Finally, regarding the overall IPO subscription ratio, the move was obviously strongest on the last day of the 3-day IPO. The overall subscription moved from 235.09X to 682.14X on the last day of the IPO.

Next steps after the closure of the IPO

The issue opened for subscription on 06th May 2024 and closed for subscription on 09th May 2024 (both days inclusive). The basis of allotment will be finalized on 10th May 2024 and the refunds will be initiated on 13th May. In addition, the demat credits are also expected to happen on 13th May 2024 and the stock is scheduled to list on 14th May 2024 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The demat credits to the demat account to the extent of allotment will happen by the close of 13th May 2024 under ISIN Number (INE0S3D01016).