WTI Cabs IPO Closing Subscribed 163.46 times

About the Wise Travel India (WTI Cabs) IPO

The stock of Wise Travel India Ltd (WTI Cabs) 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 ₹140 to ₹147 per share. Being a book built issue, the final price will be discovered in the above band. Wise Travel India IPO (WTI Cabs) 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 it is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Wise Travel India Ltd (WTI Cabs) will issue a total of 64,41,000 shares (64.41 lakh shares), which at the upper band of IPO price of ₹147 per share aggregates to fresh fund raising of ₹94.68 crore.

Since there is no offer for sale (OFS) portion, the fresh issue size will also double up as the overall IPO size. Therefore, the overall IPO size will also comprise of the issue of 64,41,000 shares (64.41 lakh shares) which at the upper band IPO price of ₹147 per share will aggregate to overall IPO size of ₹94.68 crore. Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 4,38,000 shares. Share India 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 Wise Travel India Ltd (WTI Cabs) will dilute post the IPO from 95.63% to 69.76%. The fresh issue funds will be used by the company towards funding the working capital gaps and for general corporate purposes. Share India Capital Securities Private Ltd will be the lead manager to the issue, and Beetal Financial & Computer Services Private Ltd will be the registrar to the issue. The market maker for the issue is Share India Securities Private Ltd.

Final subscription status of Wise Travel India (WTI Cabs)

Here is the subscription status of the Wise Travel India (WTI Cabs) IPO as at close on 14th February 2024.

As can be seen from the above table, the overall IPO of Wise Travel India Ltd (WTI Cabs) got subscribed an impressive 163.46 times. The HNI / NII portion led the stakes with 375.56 times subscription, followed by the Retail portion at 108.76 times subscription. The QIB portion of the IPO also got a healthy subscription of 106.69 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 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 4,38,000 shares were allocated as market maker portion to Share India 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.

In the above IPO of Wise Travel India Ltd (WTI Cabs), the anchor allocation of 17,85,000 shares was carved out of the QIB portion, as a result of which the QIB offer to the public reduced from the original 46.20% of the issue size to 18.49% of the issue size. The anchor allocation bidding opened on February 09th, 2024 and also closed on the same day. A total of 17,85,000 shares were allocated across 6 anchor investors. The anchor allocation was done at the upper end of the IPO price band of ₹147 per share (which includes face value of ₹10 per share and premium of ₹137 per share).

The total anchor allocation value was worth ₹26.24 crore. Out of the 6 anchor investors who got allotted 100% of the anchor portion; 2 anchor investors got allocated more than 10% each of the anchor quota between them. The 6 anchor investors included; Rajasthan Global Securities Private Ltd (57.82%), LSRD Securities Private Ltd (11.48%), Silver Stallion Ltd (7.67%), Vikasa India EIF I Fund (7.67%), Nova Global Opportunities Fund (7.67%), and Zeal Global Opportunities Fund (7.67%). These 6 anchor investors accounted for 100% of the overall anchor allocation. Out of the anchor shares allocated to investors on February 09th, 2024, a lock in of 30 days will be applicable for 50% of the shares (up to March 16th, 2024) and a lock-in of 90 days will be applicable for the remaining shares (up to May 15th, 2024). The allocation of market maker inventory of 6.80% is outside the anchor portion.

How subscription built up for the IPO of Wise Travel India (WTI Cabs)

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 Wise Travel India Ltd (WTI Cabs). The IPO was kept open for 3 working days.

Here are the key takeaways from the subscription numbers on a day-wise basis for Wise Travel India Ltd (WTI Cabs).

• The HNI / NII portion got the best subscription in the Wise Travel India Ltd (WTI Cabs) IPO at 375.56 times and it got 3.60 times subscribed on the first day of the IPO itself.
   
• The Retail portion was behind the HNI / NII portion in terms of subscription at 108.76 times overall and it got 7.26 times subscribed at the end of the first day.
   
• The QIB portion was third in the pecking order in terms of subscription at 106.69 times overall and it got exactly 0.02 times subscribed at the end of the first day.
   
• While the QIB portion got fully subscribed only on the second day, the retail and HNI / NII portion got fully subscribed on the first day of the IPO itself. Hence, the overall subscription was also filled up on the first day of the IPO itself. The overall IPO which saw subscription of 163.46 times got subscribed at 4.35 times at the close of the first day of the IPO.
   
• 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 17.69X to 375.56X on the last day of the IPO. Even the retail portion saw the total subscription ratio move from 18.77X to 108.76X 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 7.05X to 106.69X on the last day of the IPO. Finally, regarding the overall IPO subscription ratio, it also moved from 15.01X to 163.46X on the last day of the IPO.

Overall, the IPO of Wise Travel India Ltd (WTI Cabs) is among the few SME IPOs in the last one year to have got subscribed more than 160 times and that is a good sign of things to come.

Next steps after the closure of the IPO

The issue opened for subscription on 12th February 2024 and closes for subscription on 14th February 2024 (both days inclusive). The basis of allotment will be finalized on 15th February 2024 and the refunds will be initiated on 16th February 2024. In addition, the demat credits are expected to happen on 16th February 2024 and the stock is scheduled to list on 19th February 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 16th February 2024 under ISIN Number (INE623Y01011).