Zeal Global Services IPO Final Subscription Status

The IPO of Zeal Global Services Ltd closed for subscription on Tuesday, 01st August 2023. The IPO had opened for subscription on 28th July 2023. Let us look at the final subscription status of Zeal Global Services Ltd at the close of subscription on 01st August 2023.

A quick word on Zeal Global Services Ltd and the SME IPO

Zeal Global Services Ltd, is an SME IPO on the NSE Emerge segment which had opened for subscription on 28th July 2023. The company, Zeal Global Services Ltd, was incorporated in the year 2014 to offer detailed and end-to-end logistic solutions in the air cargo industry to enhance the efficiency and seamlessness of the operations. It operates as a General Sales and Service Agent (GSSA) and also acts as a sales partner for different airlines to facilitate the logistics of their air cargo business. Zeal Global Services Ltd is headquartered in Delhi but has operations and spread across the length and breadth of India.

Broadly, Zeal Global Services Ltd operates with its two principal verticals viz. cargo carrier service and passenger carrier service. Zeal Global Services Ltd curates logistics solutions for customers based on these verticals and the network and the skill sets built up over time. Hence, the solutions are designed for specific needs and largely customized. The company deploys its services across various industries including strong practices in sectors like pharmaceuticals, automotive, fashion and industrials. It offers sales, marketing, and administrative support for its clients, as add-on service. The fresh issue funds will be used for investment in subsidiaries, part repayment of debt and working capital needs. The IPO is lead managed by Expert Global Consultants Private Ltd while Skyline Financial Services Ltd is the registrar to the IPO.

More about Zeal Global Services IPO

Zeal Global Services IPO worth ₹36.46 crore, comprises entirely of a fresh issue of shares with no offer for sale component to the public issue. The total SME IPO of Zeal Global Services Ltd entails issue of 35.40 lakh shares at which at the fixed price of ₹103 per share aggregates to ₹36.46 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 1,200 share each. Thus, the minimum investment of ₹123,600 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 2 lots of 2,400 shares worth ₹247,200 as the bare minimum investment. There is no upper limit for the HNI / NII category. There is also a 5% market maker allocation of 177,600 shares and the market maker in this case is Rikhav Securities. Post the IPO, the promoter equity in the company will get diluted from 100.00% to 73.40%. Let us now turn to the final subscription details of the IPO as of the close of subscription on 01st August 2023.

Zeal Global Services IPO Final Subscription Status

Here is the subscription status of the Zeal Global Services Ltd IPO as at close on 01st August 2023.

The issue was only open for retail investors, and for the non-retail buyer largely comprising of HNI / NII investors. There was a broad quota designed for each of the segments viz. the retail, HNI NII; apart from a small 5.02% quota for the market markers. The market maker offers buy and sell quotes post listing so that the liquidity in the counter can be sustained with minimal basis risk for the investor. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

As can be seen in the table above, there was no anchor allocation in the IPO of Zeal Global Services Ltd and hence the pre-IPO anchor allocation did not happen. After allocation of  5.02% quota to market makers (Rikhav Securities), the balance shares were distributed between retail investors and the non-retail HNI / NII investors.

View on IPO oversubscription – Day-wise build up

The oversubscription of the IPO was dominated by the HNI / NIIs followed by the retail investors and the QIB investors in that order. The table below captures the day-wise progression of the subscription status of Zeal Global Services Ltd IPO.

It is clear from the above table that both the retail portion and the HNI / NII portion got fully subscribed only on the second day of the IPO. In fact, at the close of the first day, either segment could not get fully subscribed. Hence the overall IPO also got fully subscribed only at the end of the second day of the issue.  The maximum traction was visible on the last day, but the overall build up was not too high on both the segments of the IPO allocation. Both the categories of investors viz., HNIs / NIIs and retail saw the best relative traction and build-up of interest only on the last day of the IPO. There is an allocation of 177,600 shares to Rikhav Securities for market making, which has been carved out separately in the issue.

The IPO of Zeal Global Services Ltd opened for subscription on 28th July 2023 and closed for subscription on 01st August 2023 (both days inclusive). The basis of allotment will be finalized on 04th August 2023 and the refunds will be initiated on 07th August 2023. In addition, the demat credits are expected to happen on 08th August 2023 and the stock is scheduled to list on 09th 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.