Yudiz Solutions IPO Final Subscription Status

Yudiz Solutions IPO closed on Tuesday, 08th August 2023. The IPO had opened for subscription on 04th August 2023. Let us look at the final subscription status of Yudiz Solutions Ltd at the close of subscription on 08th August 2023. The price band for the IPO was fixed at ₹162 to ₹165 per share and the stock has a face value of ₹10.

About the Yudiz Solutions IPO

Yudiz Solutions IPO worth ₹44.84 crore, worth comprises entirely of a fresh issue with no offer for sale (OFS) component. The Fresh Issue portion of Yudiz Solutions Ltd entails the issue of 27.176 lakh shares at which at the upper band of the price range at ₹165 per share aggregates to ₹44.84 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 ₹132,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs / NIIs can invest in a minimum of 2 lots of 1,600 shares worth ₹264,000 as the bare minimum investment. There is no upper limit for the HNI / NII category or even for the QIB category. Yudiz Solutions Ltd will deploy the funds for new product development, inorganic acquisitions, and network and cabling expenses, apart from working capital needs and for general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 100.00% to 73.66%. The issue is lead managed by Narnolia Financial Services Ltd, while Link MAS Services 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 08th August 2023.

Yudiz Solutions IPO Final Subscription Status

Here is the subscription status of the Yudiz Solutions Ltd IPO as at close on 08th August 2023.

The issue was 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. A total of 1,36,800 shares were allocated as market maker portion to Kantilal Chhaganlal Securities, which will act as a market maker 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.

As can be seen, from the above table, the company had allocated 27.97% of its original issue size to anchor investors. The anchor allotment was done on 03rd Augus 2023 and details and the anchor allocation was spread across 10 anchor investors. All the anchor allocation was done at the upper end of the price band at ₹165 per share. Out of the 7.60 lakh shares allocated under the anchor portion, NAV Capital VCC was allocated 15.79% of the anchor portion while Craft Emerging Markets Fund PCC was allocated 14.00% and Tano Investment Opportunity Fund was allocated 11.37%. Of the balance, Quantum State Investment Fund got 9.89% of the anchor allocation while Resonance Opportunities Fund was allocated 8.95%. In addition, 5 other anchor investors were allocated 8% each. The anchor portion is reduced from the overall QIB quota.

How the subscription built up for Yudiz Solutions IPO 

The oversubscription of the IPO was dominated by the retail investors followed by the HNI / NIIs investors and then by the QIB investors in that order. The table below captures the day-wise progression of the subscription status of Yudiz Solutions 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 retail portion and the HNI / NII portion got fully subscribed only on the second day of the IPO. Even the overall IPO was fully subscribed only by the close of the second day 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 relatively better traction and build-up of interest on the last day of the IPO, although the eventual subscription levels were still quite tepid. There is an allocation of 136,800 shares to Kantilal Chhaganlal Securities Ltd for market making. The market maker offers two way quotes on the stock post listing using the inventory of shares and ensures that investors do not get overly worried about liquidity and basis risk in the early stages.

Yudiz Solutions IPO opened for subscription on 04th August 2023 and closed for subscription on 08th August 2023 (both days inclusive). The basis of allotment will be finalized on 11th August 2023 and the refunds will be initiated on 14th August 2023. In addition, the demat credits are expected to happen on 17th August 2023 and the stock is scheduled to list on 17th August 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.

Read about Yudiz Solutions IPO

A quick word on Yudiz Solutions Ltd and the SME IPO

Yudiz Solutions Ltd, is an SME IPO on the NSE which had opened for subscription on 04th August 2023. The company, Yudiz Solutions Ltd, was incorporated in the year 2012 to offer IT solutions and consultancy services. It is not just positioned as a technology services company but also as a digital transformation company, which is where the action is. Its areas of operations include mobile app development, game development, Blockchain, AR/VR web development, apart from the regular activities like website development, ecommerce set up, and portal development for the clients. Its blockchain and game app development businesses  are the most robust of the verticals it operates in.

Yudiz Solutions Ltd offers the array of IT solutions in Mobile, Web, AR/VR, UI/UX and IoT through integrating trending technologies. Its various platforms include News Platform, E-commerce Bidding Platform, On-Demand Services Platform, VR Training platform, Upskilling Industry specific VR platform, HR Intelligence platforms and many more. The company brings some advantages to the table like domain expertise, skilled team, an integrated one-stop solution offering and low attrition rates ensuring that there is continuity in its solution offerings. The fresh funds will be used by the company for acquisitions, new product development, networking, and brand building. Being in the knowledge industry, much of the outlay would be into intangibles. Execution and handling the competition remains the key issues in this sector.