ABS Marine Services IPO Allotment Status

Understand the basics of the ABS Marine Services IPO

The stock of ABS Marine Services Ltd 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 within this band. The ABS Marine Services IPO has only a fresh issue component and no offer for sale (OFS) portion. The fresh issue portion is EPS dilutive and equity dilutive, but 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, ABS Marine Services Ltd will issue a total of 65,50,000 shares (65.50 lakh shares approximately), which at the upper band IPO price of ₹147 per share aggregates to fresh fund raising of ₹96.29 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 65,50,000 shares (65.50 lakh shares) which at the upper band IPO price of ₹147 per share will aggregate to overall IPO size of ₹96.29 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 4,10,000 shares. Giriraj Stock Broking Private Ltd and Commodity Mandi Private Ltd will be joint market makers 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 86.50%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 63.42%. The fresh issue funds will be used by the company towards the acquisition of offshore vessels for expanding its business franchise and meet working capital needs. GYR Capital Advisors Private Ltd is the lead manager to the issue, and Purva Share Registry India Private Ltd will be the registrar to the issue. The market maker for the issue is Giriraj Stock Broking Private Ltd and Commodity Mandi Private Ltd. The ABS Marine Services IPO will be listed on the SME IPO segment of the NSE.

Checking ABS Marine Services IPO allotment status 

How to check the allotment status. Since this is an NSE SME IPO, there is no facility to check on the exchange website and BSE only offers allotment status for the mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can check your allotment status only on the website of the IPO registrar, Purva Share Registry India Private Ltd. Alternatively, if your broker provides you a link to access the allotment status, you can do the same. Here are the steps that you need to follow to check allotment status.

Checking the allotment status of ABS Marine Services IPO on the website of Purva Share Registry India Private Ltd (Registrar to IPO)

Visit the Purva Share Registry India Private Ltd registrar website for IPO status by clicking on the link below:

https://www.purvashare.com/investor-service/ipo-query

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there is also a way to access this page via the home page of Purva Share Registry Private Ltd by clicking on the Investor services dropdown on the home page and then clicking on the IPO Query link displayed prominently underneath it. It all works the same.

Here, as soon as you click on the link, you are brought to the main landing page. On the top of the page will be the option to select the company for which you want to check the allotment status. Here the company will be available on the drop down list only after the allotment status is finalized on 16th May 2024. You can then select the stock of ABS Marine Services IPO from the drop down list to check the allotment status. 

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select ABS Marine Services Ltd from the drop down box. The allotment status will be finalized on 16th May 2024, so in this case, you can access the details on the registrar website either late on 16th May 2024 or by middle of 17th May 2024. Once the company is selected from the dropdown box, you have 2 methods to check the allotment status for the IPO.

• Firstly, you can access with Application Number / CAF Number. Enter the Application / CAF number and then click on Search Button. Enter the application exactly it is given in the acknowledgement slip given to you post the IPO application process. After that you can click on the Search button to get the details of shares allotted to you in the IPO.

• Secondly, you can also search by Income Tax PAN number. Once you select PAN (permanent account number) from the dropdown menu, enter your 10-digit PAN number, which is an alphanumeric code. The PAN number will be available on your PAN card or on top of your income tax returns filed. Once you enter the PAN, click on the Search Button.

The IPO status with number of shares of ABS Marine Services Ltd allotted will be displayed on the screen. You can save a screenshot of the screen for future reference. Once again, you can verify the demat credit by the close of 17th May 2024.

How allocation quota and subscription impact basis of allotment

Here is a quick look at how the allocation was made across different categories of investors in the IPO of ABS Marine Services Ltd.

Data Source: Company RHP

The response to the IPO of ABS Marine Services Ltd was very strong and it was subscribed 145.80X overall at the close of bidding on 15th May 2024. The HNI / NII segment saw robust subscription of 271.70X, while the retail portion saw strong subscription of 112.63X. Even the QIB investors saw subscription of 109.30X. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 15th May 2024. Normally, higher the subscription levels, the lower are the chances of allotment; so, you can look at the subscription levels below and take a call on the chances of allotment in the IPO.

Data Source: NSE 

The probability of allotment is inversely related to the extent of subscription. In the above case, since the retail and the HNI portion have got substantially oversubscribed, the chances of allotment are relatively lower. However, it must be noted that you need to wait for the allotment status to be finalized before you can take any viable call on this.

Next steps in the ABS Marine Services IPO

The issue opened for subscription on 10th May 2024 and closed for subscription on 15th May 2024 (both days inclusive). The basis of allotment will be finalized on 16th May 2024 and the refunds will be initiated on 17th May. In addition, the demat credits are also expected to happen on 17th May 2024 and the stock is scheduled to list on 21st 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 17th May 2024 under ISIN Number (INE0QRV01016).

Investors would do well to remember that the level of subscription is very material as it determines the chances of getting allotment. Normally, higher the subscription ratio, lower the chances of allotment and vice versa. In this case, the subscription levels have been very high in the IPO; both in the Retail segment and also in the HNI / NII segment. Investors in the IPO need to assess their chances of allotment accordingly. The final status will be known once the basis of allotment is finalized and uploaded for you to check. You can apply the above allotment checking process flow after the basis of allotment is finalized.