Electro Force (India) IPO Allotment Status

About the Electro Force (India) Ltd IPO

Electro Force (India) Ltd has a face value of ₹10 per share and it is a fixed price issue with the price pegged at ₹93 per share. The IPO of Electro Force (India) Ltd has a fresh issue component and an offer for sale (OFS) portion. The fresh issue portion is EPS dilutive and equity dilutive. As part of the fresh issue, Electro Force (India) Ltd will issue 60,00,000 shares (60 lakh shares), at ₹93 per share aggregates to fresh fund raising of ₹55.80 crore. The offer for sale (OFS) will entail the sale of 26,74,800 shares (26.75 lakh shares approximately), at ₹93 per share aggregating to OFS size of ₹24.88 crore. Therefore, the total IPO size will also comprise of the issue and sale of 86,74,800 shares (86.75 lakh shares approximately) at ₹93 per share, aggregating to overall IPO size of ₹80.68 crore. The issue has allocated 4,35,600 shares to the market maker (Arham Shares Private Ltd) to provide two-way quotes to ensure liquidity and low basis costs post-listing. Post the issue, the promoter stake will dilute from 100.00% to 62.93%.

Lot sizes for investing in the IPO

The minimum lot size for the IPO investment was 1,200 shares. Thus, retail investors can invest a minimum of ₹111,600 (1,200 x ₹93 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 2,400 shares and having a minimum lot value of ₹223,200. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for. Being an SME, Electro Force (India) IPO had a market making portion with a market maker inventory allocation of 4,35,600 shares. The market maker, Arhan Shares Private Ltd, will provide two-way quotes to ensure liquidity on the counter post listing and low basis costs. The promoter quota will get diluted post the IPO from 100% to 62.93%. The fresh funds will be used by Electro Force (India) Ltd to fund the working capital needs of the company and for undertaking inorganic growth. First Overseas Capital Ltd will be the lead manager to the issue, and Skyline Financial Services Private Ltd will be the registrar to the issue.

When and how to check IPO allotment status online

The basis of allotment will be finalized on 22nd December 2023, the refunds will be initiated on 26th December 2023, demat credits will also be finalized on 26th December 2023, while the stock of Electro Force (India) Ltd will get listed on the NSE SME Emerge segment on 27th December 2023. The allotment status can be checked online after the basis of allotment is finalized. It would be typically be available, in this case, late on 22nd December 2023 or by middle of 23rd December 2023.
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 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 of Electro Force (India) Ltd on the website of 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 Electro Force (India) Ltd on the list around 22nd December 2023 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 Electro Force (India) Ltd from the dropdown box. The allotment status will be finalized on 22nd December 2023, so in this case, you can access the details on the registrar website either late on 22nd December 2023 or by middle of 23rd December 2023. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO. All the three 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 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 Electro Force (India) 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 26th December 2023 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 Electro Force (India) Ltd got.

Quota allocation and subscription response to the IPO of Electro Force (India) Ltd

The issue is split into retail and HNI / NII portion with a small allocation for the market maker to the IPO. The anchor allotment portion is normally carved out of the QIB portion but in this case there is no QIB portion and no anchor allocation that has been made. The break-down of the reservation for  different categories of investors is as under.

The response to the IPO of Electro Force (India) Ltd was modest as the overall issue was subscribed 4.28X at the close of bidding on 21st December 2023 which is modestly comparable to the median subscription that the NSE SME IPOs have been getting in general. Out of the overall bids received, the retail segment saw 6.44 times subscription and the non-retail HNI / NII portion saw 2.12 times subscription. There was no QIB allocation in this IPO of Electro Force (India) Ltd. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 21st December 2023.

What do we read from the above data? Clearly, the oversubscription to the IPO is fairly modest so the chances of getting allotment in the IPO is relatively higher 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 22nd December 2023 when the basis of allotment will be finalized for the IPO of Electro Force (India) Ltd. Post that, the status of allotment can be checked online based on the methodology explained here.