How to check allotment status of Kody Technolab IPO

Key points about the Kody Technolab Ltd IPO

The ₹27.52 crore IPO of Kody Technolab Ltd comprises entirely of a fresh issue with no offer for sale (OFS) component. The Fresh Issue portion of Kody Technolab Ltd entails the issue of 17.20 lakh shares which at the fixed IPO price of ₹160 per share aggregates to ₹27.52 crore. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 800 share each. Thus, the minimum investment of ₹128,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO. HNIs / NIIs can invest in a minimum of 2 lots of 1,600 shares worth ₹256,000 as the bare minimum investment. There is no upper limit for the HNI / NII category or even for the QIB category.

The IPO of Kody Technolab Ltd opened for subscription on 15th September 2023 and closed for subscription on 20th September 2023 (both days inclusive). The basis of allotment will be finalized on 25th September 2023 and the refunds will be initiated on 26th September 2023. In addition, the demat credits are expected to happen on 27th September 2023 and the stock is scheduled to list on 28th September 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated.

What you must know about allotment status checking

Allotment status online is an internet facility that is provided by the BSE (formerly Bombay Stock Exchange) in the case of mainboard IPOs and BSE SME Segment IPOs as well as by the registrars on their website. Many of the brokers also provide direct connectivity to the database. However, in the absence of any connectivity, one option you always have to use one of these options. In this case, Kody Technolab Ltd is an NSE SME Emerge IPO and hence the data would not be available on the website of BSE.

NSE does not provide this facility on its website. That means; you can either only check the allotment status on the website of the IPO registrar, KFIN Technologies Limited (formerly Karvy Computershare). The allotment in the IPO will depend on the extent of the oversubscription across the retail, HNI / NII and the QIB portion and it is the valid applications that will make the cut. But we will look at that later. Let us first look at how to check the allotment status of the Kody Technolab Ltd IPO. Here are the steps.

When and where to check the allotment status?

When can the allotment status be checked? The IPO allotment status will be finalized on Monday, September 25, 2023. Hence, either late on September 25, 2023 or by middle of September 26, 2023, the allotment status can be checked online on the website of the IPO registrar. Typically, in all the mainboard issues, it is possible to get the allotment status of the IPO either at the BSE website or on the website of the registrar to the IPO.

However, Kody Technolab Ltd IPO being an NSE-SME Emerge IPO, it would be listed only on the NSE and not on the BSE. Hence BSE will not be providing the allotment status for this IPO, while NSE does not normally offer online allotment status on their website. Hence, in the case of Kody Technolab Ltd IPO, the only way is to check on the website of KFIN Technologies, the registrar to the IPO.

Checking the allotment status of Kody Technolab Ltd on KFIN Technologies Ltd (Registrar to IPO)

Visit the website of KFIN Technologies Ltd, which has been appointed as the registrar for the issue. You can access their website for IPO status by clicking on the link below:

https://ris.kfintech.com/ipostatus/

Here you are given the choice to select 5 servers viz. Link 1, Link 2, Link 3, Link 4, and Link 5. There is nothing to be confused, as these are just server backups in case one of the servers is experiencing too much traffic. You can select any of these 3 servers and in case you are finding problems accessing one of the servers, then try the other one. There is no difference, which server you select.

A small thing to remember here. Unlike on the BSE website, where the names of all IPOs are there on the drop-down menu, the registrar will only provide of the IPOs managed by them and where the allotment status is already finalized. Also, for simplicity, you can either choose to see all IPOs or just recent IPOs. Choose the latter, as that reduces the length of the list of IPOs you need to search through. Once you click on Recent IPOs, the dropdown will only show the recent active IPOs, so once the allotment status is finalized, you can select Kody Technolab Ltd from the drop-down box.

• There are 3 options. You can either query the allotment status based on PAN, Application Number or Demat Account (DPID-Client ID combination).
   
• To Query by PAN, check the appropriate box and follow these steps.
  •  Enter the 10-digit PAN number
  •  Enter the 6-digit Captcha Code
  •  Click on Submit button
  • Allotment status gets displayed on screen

• To Query by Application Number, check the appropriate box and follow these steps.
  • Enter the Application Number as it is
  • Enter the 6-digit Captcha Code
  • Click on Submit button
  • Allotment Status gets displayed on screen

In the past, the first step was to select Application Type (ASBA or Non-ASBA) before inputting your application number. Now, that step has been done away with.

• To Query by Demat Account, check the appropriate box and follow these steps.
  •  Select the depository (NSDL / CDSL)
  •  Enter the DP-ID (Alphanumeric for NSDL and Numeric for CDSL)
  •  Enter the Client-ID
  •  In the case of NSDL, the Demat account is 2 strings
  •  In the case of CDSL, the Demat account is just 1 string
  •  Enter the 6-digit Captcha Code
  •  Click on Submit button
  •  Allotment Status gets displayed on screen

It is always advisable to retain a saved screenshot of the allotment status output for future reference. The same can be tallied with the demat account credit subsequently.

Subscription status for the Kody Technolab IPO

Here is the final subscription status of the Kody Technolab  IPO as at close on 20th September 2023, at 18.00 hours.

The issue was only open for retail investors and for the HNI / NIIs. There was a broad quota designed for each of the segments viz. the QIBs, the retail and the HNI NII. The table below captures the allocation reservation done for each of the categories.

Since there is no anchor portion in the IPO and also no specific QIB allocation, the entire issue, other than the 5.02% allocated to the market makers (Spread X Securities in this case), were for the public issue only. The market maker uses the shares to offer buy and sell quotes on the counter post listing so as to keep the counter liquid and reduce the basis risk of trading in the stock.

Brief on Kody Technolab Ltd

Kody Technolab Ltd was incorporated in the year 2017 and is engaged in the business of providing software development services for an array of different industries. Most of its software stack are in the more modern and growing versions of the IT industry. Its technology stack includes staff augmentation, ML (machine learning) development, AR (augmented reality) development and maintenance, enterprise mobility, CX strategy and design etc. To sum it up, the company offers the complete package of digital transformation and hand holds the customer through the life cycle of the digital transformation process. Apart from the above, it also offers as part of the stack; artificial intelligence (AI) robotics, IT consulting, Web App development and focused IOT (internet of things) support systems.

The IT industry in India has gone through 3 phases in the last 15 years. It first transformed from the traditional outsourcing for BFSI (banking, financial services, insurance) IT needs to a more digital environment. The digital environment comprised of SMAC (social media, mobility, analytics, and cloud). Now, Indian IT is mutating to the third stage which is the Digital Plus segment comprising of artificial intelligence, machine learning, Internet of Things, virtual reality, augmented reality etc. It is in this third phase that the company is positioned. It is still a small company with annual revenues of just about ₹11 crore but with a high net profit margin of nearly 30%. The company has been profitable for the last two years.

The company has been promoted by Manav Patel, Manali Patel and Pooja Patel. The promoter holding in the company currently stands at 100.00%. However, post the fresh issue of shares and the OFS, the promoter equity holding share will reduce to 73.01%. The fresh issue funds will be used by the company for capex towards setting up a development centre at GIFT City, Gandhinagar, repayment of loans, working capital expenses of the company and also to meet general corporate expenses. While Beeline Capital Advisors Private Ltd will be the lead manager to the issue, KFIN Technologies Ltd will be the registrar to the issue. The market maker for the issue is Spread X Securities Ltd.