Baba Food Processing India IPO Allotment Status

Building blocks of the Baba Food Processing India Ltd IPO

The IPO of Baba Food Processing India Ltd opened for subscription on 03rd November 2023 and closed for subscription on 07th November 2023. The stock of the company has a face value of ₹10 per share and it is a book building issue with the price band for the IPO fixed in the range of ₹72 to ₹76 per share. The final price will be discovered via book building in this band. The IPO of Baba Food Processing India Ltd has only a fresh issue component with no book built portion. As part of the fresh issue portion of the IPO, Baba Food Processing India Ltd will issue a total of 43,42,105 shares (43.42 lakh shares approximately), which at the upper IPO band price of ₹76 per share aggregates to a total fund raising of ₹33 crore. Since there is no offer for sale portion, the total size of the fresh issue will also be the total size of the IPO. Hence the overall IPO size will also comprise of 43,42,105 shares, which at the upper price band of ₹76 per share will aggregate to ₹33 crore.

The minimum lot size for the IPO investment will be 1,600 shares. Thus, retail investors can invest a minimum of ₹121,600 (1,600 x ₹76 per share) in the IPO. That is also the maximum that the retail investors can invest in the IPO. HNI / NII investors can invest a minimum of 2 lots comprising of 3,200 shares and having a minimum lot value of ₹243,200. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for. Now, like in any SME IPO, the IPO of Baba Food Processing India Ltd also has a market making portion with an inventory allocation of 2,17,600 shares. The market maker for the issue is Nikunj Stock Brokers Ltd and they will provide two-way quotes to ensure liquidity on the counter and low basis costs, post listing. Post the IPO, the promoter stake will get diluted from 99.99% to 73.42%. The company will invest the fresh funds into 100% subsidiary (Panchakanya Foods) to financing purchase of machinery to make Besan and Sattu. Horizon Management Private Ltd will be the lead manager to the issue, and MAS Services Ltd will be the registrar to the issue.

Checking allotment status of Baba Food Processing India Ltd IPO

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, MAS Services India 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 Baba Food Processing India Ltd on MAS Services (Registrar to IPO)

Visit the MAS Services registrar website for checking the IPO allotment status by clicking on the link below:

https://www.masserv.com/opt.asp

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 also a way to access this page via the home page of MAS Services Ltd by clicking on the IPO Allotment Status link displayed prominently on the home page. It all works the same.

Once you go to the main allotment status page of MAS Services the investors have 2 options. They can either query for the IPO allotment status based on the Application Number or on the basis of a combination of DP ID and Client ID. Here is how you can go about both these options.

    • To Query by Application Number, click on the “Search on Application No.” hyperlink. This will take you to a fresh page with a box provided to input the application number. Here is what needs to be done.

        ◦ Enter the Application Number as it is
        ◦ Enter the 6-digit Captcha Code
        ◦ Click on Submit button
        ◦ Allotment Status gets displayed on screen showing number of shares allotted

    • To Query by DP-ID, click on the “Search on DP-id/Client id” hyperlink. This will take you to a fresh page with 2 boxes provided to input the DP ID and the Client ID in that order. Here is what needs to be done.

        ◦ Enter the DP-ID
        ◦ Enter the Client-ID
        ◦ Enter the 6-digit Captcha Code
        ◦ Click on Submit button
        ◦ Allotment Status gets displayed on screen showing number of shares allotted

MAS Services Ltd offers you the facility to toggle between the two search options of application number and DP id, without going back to the main page. It is a good idea to take  a screenshot of the final output for your records and also for reconciliation with the demat account on the demat allotment date.

There are some basic rules to remember here. The basis of allotment is being finalized on 10th November 2023, so the investors would be able to access the online allotment status facility, either late on 10th November 2023 or by the middle of 11th November 2023. Once you get the online output, you can save a screenshot of the same, so that the same can be later reconciled with the demat credit on 15th November 2023 or later.

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 Baba Food Processing India Ltd.

The response to the IPO of Baba Food Processing India Ltd was robust and it was subscribed 69.44X overall at the close of bidding on 07th November 2023 with the retail segment seeing 60.82 times subscription and the non-retail or HNI / NII portion seeing 84.73 times subscription. However, the sweepstakes were led by the QIB portion which was subscribed a full 147.02 times. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 07th November 2023. Normally, higher the subscription levels, the lower are the chances of allotment.

To sum it up, the oversubscription is quite high, so the chances of allotment in the IPO would be relatively limited. This applies to the retail portion and also to the HNI / NII portion; as the subscription is very robust in both the categories. 

With the IPO of Baba Food Processing India Ltd closed for subscription at the end of November 07th, 2023, the next piece of action shifts to the finalization of the basis of allotment and later to the listing of the IPO. The basis of allotment will be finalized on 10th November 2023 while the refunds would be initiated on 13th November 2023. The shares of Baba Food Processing India Ltd (ISIN - INE0QW501012) would be credited to the demat accounts of eligible shareholders by the close of 15th November 2023 while the stock of Baba Food Processing India Ltd is expected to be listed on 16th November 2023. The listing will happen on the NSE SME segment for small companies, which is distinct from the regular mainboard IPO space.