DCG Cables & Wires IPO Allotment Status

Building blocks of the DCG Cables & Wires Limited IPO

DCG Cables & Wires IPO, a fixed price issue of Rs 49.99 crores, comprises an entirely fresh issue of 49.99 lakh shares. DCG Cables & Wires IPO commenced subscription on April 8, 2024, and concludes today, April 10, 2024. The allotment for DCG Cables & Wires IPO is set to be finalized on Friday, April 12, 2024. DCG Cables & Wires IPO is slated to list on NSE SME, with a tentative listing date scheduled for Tuesday, April 16, 2024.

DCG Cables & Wires IPO price of shares is fixed at ₹100 per share. The minimum lot size for application stands at 1200 shares, requiring a minimum investment of ₹120,000 for retail investors. HNIs are required to invest in a minimum of 2 lots (2,400 shares), amounting to ₹240,000.  Interactive Financial Services Ltd is the book running lead manager of the DCG Cables & Wires IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for DCG Cables & Wires IPO is Nikunj Stock Brokers.

How to check allotment status of DCG Cables & Wires Ltd IPO?

Since this is a SME IPO, there is no facility to check on the exchange website and BSE only offers allotment status for the mainboard IPOs. If you have applied for the IPO, you can check your allotment status also on the website of the IPO registrar, Bigshare Services Pvt 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 on the website of the IPO registrar, Bigshare Services Pvt Ltd. The same can typically checked once the basis of allotment is finalized in this case, which will be late on April 12, 2024.

Checking the allotment status on Bigshare Services Pvt Ltd (Registrar to IPO)

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

https://ipo.bigshareonline.com/IPO_Status.html

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 Bigshare Services Pvt 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 Bigshare Services Pvt Ltd 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.

o    Enter the Application Number as it is
o    Enter the 6-digit Captcha Code
o    Click on Submit button
o    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.

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

Bigshare Pvt 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 April 12, 2024, so the investors would be able to access the online allotment status facility, either late on April 11, 2024 or by the middle of April 11, 2024. 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 April 15, 2024 or later. It would appear on the demat account with ISIN Number.

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 DCG Cables & Wires Ltd at the close of the IPO on April 10, 2024.

Data Source: NSE

DCG Cables & Wires IPO was oversubscribed by 16.96x, indicating significant investor interest in the offering. The retail category saw the highest subscription rate, with a subscription of 21.70x, showcasing strong retail investor demand. Non-Institutional Buyers (NII) also showed substantial interest, subscribing 11.53x.

Market Maker subscription stood at 1 time, indicating modest participation from this category. The total number of shares bid for exceeded the shares offered, indicating oversubscription across all investor categories. The total amount raised through the IPO was Rs 767.30 crores. A total of 42,926 applications were received for the IPO, further reflecting the widespread interest among investors.

Overall, the IPO's robust subscription rates suggest positive market sentiment and confidence in DCG Cables & Wires' prospects.

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

Next steps in the IPO of DCG Cables & Wires Ltd

With the IPO of DCG Cables & Wires' Ltd closed for subscription at the end of April 10, 2024, 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 April 12, 2024 while the refunds would be initiated on April 15, 2024.

The shares of DCG Cables & Wires' Ltd would be credited to the demat accounts of eligible shareholders by the close of April 15, 2024 while the stock of DCG Cables & Wires' Ltd is expected to be listed on April 16, 2024. The listing will happen on the NSE SME segment for small companies, which is distinct from the regular mainboard IPO space.

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 modest 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.