Baweja Studios IPO Allotment Status

About the Baweja Studios Ltd IPO

The stock of Baweja Studios Ltd has a face value of ₹10 per share and it is a book built issue. The price band for the book built issue has been set in the range of ₹170 to ₹180 per share. The final price of the IPO will be decided within this price band. The Baweja Studios IPO has a fresh issue component and an offer for sale (OFS) portion as part of the IPO. As part of the fresh issue portion of the IPO, Baweja Studios Ltd will issue a total of 40,00,000 shares (40.00 lakh shares), which at the upper band of the book building band of ₹180 per share aggregates to fresh fund raising of ₹72.00 crore. Additionally, as part of the offer for sale (OFS) portion, promoters of Baweja Studios Ltd will offer 14,00,000 shares (14.00 lakh shares), which at the upper price band of ₹180 per share aggregates to fresh fund raising of ₹25.20 crore. The entire 14 lakh shares as part of the offer for sale (OFS) are being offered by the promoter, Harjaspal Singh Baweja.

Therefore, the overall IPO size will also comprise of the issue and sale of 54,00,000 shares (54.00 lakh shares) which at the upper IPO band price of ₹180 per share will aggregate to overall IPO size of ₹97.20 crore. Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,88,000 shares. NNM Securities Private Ltd will be the market makers for the SME IPO. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs. Post the IPO, the promoter stake in Baweja Studios Ltd will dilute from 99.99% to 70.70%. The fresh issue funds will be used by the company for meetings its working capital expenses and general corporate expenses. Fedex Securities Private Ltd will be the lead manager to the issue, and Skyline Financial Services Private Ltd will be the registrar. NNM Securities Private Ltd is the market maker.  

When and how to check IPO allotment status online

With the IPO having closed for subscription on 01st February 2024, the basis of allotment will be finalized on 02nd February 2024. The refunds will be initiated on 05th February 2024, and the demat credits will also be finalized on 05th February 2024. The stock of Baweja Studios Ltd will get listed on the NSE SME Emerge segment on 06th February 2024. The allotment status can be checked online after the basis of allotment is finalized. It would typically be available, in this case, late on 02nd February 2024 or by middle of 03rd February 2024. We will now see how the allotment status can be accessed online.

Since this is an NSE SME IPO, there is no facility to check on the exchange website and BSE only offers allotment status in the case of mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can check your allotment status online on the website of the IPO registrar, Skyline Financial Services Private Ltd. Here are the steps that you need to follow to check allotment status.

Checking the allotment status on Skyline Financial Services Private Ltd (Registrar to IPO)

Visit the Skyline Financial Services Private Ltd registrar website for IPO status by clicking on the link below:

https://www.skylinerta.com/ipo.php

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 Skyline Financial Services Private Ltd by clicking on the Public Issues link displayed prominently on the home page. It all works the same.

The first thing you do is to select the company you want to access the allotment status for. The drop down box will only show companies where the allotment status is already finalized. In this case, you can get to see the name of Baweja Studios Ltd on the list around 02nd February 2024 when the allotment status and the basis of allotment by the issuer is finalized. Once the company name appears on the drop down, you can click on the company name and go to next screen.

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Baweja Studios Ltd from the dropdown box. The allotment status will be finalized on 02nd February 2024, so in this case, you can access the details on the registrar website either late on 02nd February 2024 or by middle of 03rd February 2024. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO. Any of the three options can be selected from the same screen by opting for the preferred radio button.   

• Firstly, you can search by Beneficiary ID of your demat account. From the page you just need to first select the DP ID / Client ID option. It does not matter whether it is an NSDL account or a CDSL account. All you need to do is to write down the combination of the DP ID and the Client ID in a single string. In the case of NSDL, enter the DP id and Client id in a single string without space. In case of CDSL, just enter the CDSL client number. Remember that the NSDL string is alphanumeric while the CDSL string is a numeric string. The details of your DP and client ID are available in your online DP statement or in the statement of account. After that you can click the Search Button in either cases.

• Secondly, you can access with Application Number / CAF (Composite Application Form) 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.

• Thirdly, 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 Baweja Studios Ltd allotted will be displayed on the screen. You can save a screenshot of the digital output for future reference. Once again, you can verify the demat credit by the close of 05th February 2024 or after that. Remember that the most important factor in assessing your chances of getting allotment is the quota allocation for each category and the extent of oversubscription in the IPO. Normally, higher the oversubscription in the IPO, the lower are your chances of getting an allotment. Now, let us look at the quotas allocated to each category and also the extent of oversubscription that the IPO of Baweja Studios Ltd got.

Quota Allocation and Subscription Response 

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 2,88,000 shares were allocated as market maker portion to NNM 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.

The response to the IPO of Baweja Studios Ltd was very timid as the overall issue was subscribed just about 2.62X at the close of bidding on 01st February 2024 which is sharply lower than the comparable median subscription that the NSE SME IPOs have been getting in general. Out of the overall bids received, the retail segment saw 4.20 times subscription and the non-retail HNI / NII portion saw 1.08 times subscription. The QIB portion in the IPO of Baweja Studios Ltd also saw tepid subscription at 2.17X. The table below captures the subscription status of the Baweja Studios Ltd as at close on 01st February 2024.

What do we read from the above data? Clearly, the oversubscription to the IPO is fairly sharp so the chances of getting allotment in the IPO is relatively lower for the investors in the IPO. Investors need to factor this oversubscription into their calculations since the probability of getting allotment is inversely proportional to the subscription levels. However, it is best to wait till 02nd February 2024 when the basis of allotment will be finalized for the IPO of Baweja Studios Ltd. Post that, the status of allotment can be checked online based on the methodology explained here.

The demat credits to the demat account to the extent of allotment will happen by the close of 05th February 2024 under ISIN Number (INE0JFJ01011). The listing will happen on the NSE SME segment for small companies, which is distinct from the regular mainboard IPO space.