How to check the allotment status of Kundan Edifice IPO?

Kundan Edifice IPO worth ₹25.22 crore consists entirely of a fresh issue of shares with no offer for sale (OFS) component in the IPO. The company has issued a total of 27,72,000 shares (27.72 lakh shares) at a fixed price of ₹91 per share resulting in total IPO size of ₹25.22 crore. The issue is split into retail and HNI portion with a small allocation for the market maker to the IPO. The break-down of the reservation for  different categories of investors is as under.

Let us turn first to when you can check the allotment status of the shares online.

When can you check allotment status online

The basis of allotment will be finalized on Thursday, 21st September 2023, the refunds will be initiated on 22nd September 2023, demat credits will be finalized on 25th September 2023, while the stock of Kundan Edifice Ltd will get listed on the NSE SME Emerge segment on 26th September 2023. The company had a pre-IPO promoter holding of 99.00% and post the IPO, the promoter stake in Kundan Edifice Ltd will stand reduced to 72.28%. On listing, the company will have an indicative P/E ratio of 13.3X, which is reasonable for the sector. The allotment status online will be available either late on 21st September 2023 or by the middle of 22nd September 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, Cameo Corporate Services Ltd. Here are the steps that you need to follow to check allotment status.

Checking the allotment status of Kundan Edifice Ltd on the website of Cameo Corporate Services Ltd (Registrar to IPO)

Visit the Cameo Corporate Services Ltd registrar website for IPO status by clicking on the link below:

https://ipo.cameoindia.com/

There are three things to remember. Firstly, there also a way to access this page via the home page of Cameo Corporate Services and clicking on the IPO Status link under the Useful Links drop down at the top of the page. Secondly, you can just click on the hyper link given above and directly go to the allotment checking page. The third option, in case you are not able to click on the link, is to copy the link and paste in your web browser.

Once you reach the relevant page as explained above, 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 Kundan Edifice Ltd on the list around 15th September 2023 when the allotment status is finalized. Once the company name appears on the drop down, you can click on the company name and go to the next screen.

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Kundan Edifice Ltd from the dropdown box. The allotment status will be finalized on Thursday, 21st September 2023, so in this case, you can access the details on the registrar website either late on 21st September 2023 or by middle of 22nd September 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.
   
• In all the 3 cases above, please note that after inputting the details as relevant, there will be a 6-digit captcha that will appear and you must enter the captcha exactly as it is. It is fully a numeric captcha and it is meant to confirm that it is not a robotic access.

The IPO status with number of shares of Kundan Edifice Ltd allotted will be displayed on the screen. You can save a screenshot of the screen for future reference. Once again, you can verify the demat credit by the close of 25th September 2023. Remember that the most important factor in assessing your chances of getting allotment is 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 extent of oversubscription that the IPO of Kundan Edifice Ltd got.

Subscription response to the Kundan Edifice IPO

The response to the IPO of Kundan Edifice IPO was strong as the overall issue was subscribed 42.27X at the close of bidding on 15th September 2023 which is above the median subscription that the NSE SME IPOs have been getting in general. Out of the overall bids received, the retail segment saw 44.13 times subscription and the non-retail HNI / NII portion saw 35.68 times subscription. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 15th September 2023.

The issue has been heavily subscribed; hence your chances of allotment would proportionately reduce.

Quick word on the business profile of Kundan Edifice Ltd

Kundan Edifice Ltd was incorporated in 2010 and is engaged in manufacturing, assembly and marketing of light emitting diodes (LED) strip lights. Kundan Edifice Ltd is actually a master designer and manufacturer and is classified as an ODM company or an Original Design Manufacturer company. It designs, develops, and also manufactures these LED light strips at its own facilities and then supplies it to other client companies. Then, these companies distribute under their own brands and many of the large brands also avail the services of Kundan Edifice Ltd. It is like a form of higher end EMS service for customers. In addition, Kundal Edifice Ltd also provides specialized customized products like HV(high voltage) Flex, LV (low voltage) flex, RGB Flex and the complete accessories kit. Kundan Edifice Ltd has two manufacturing and assembly facilities located at Vasai and Bhiwandi in Maharashtra. The company employs over 270 workers in its factories, including contract workers.

Kundan Edifice has tried to position the company as a one-stop solution for all the lighting needs. The overall solution offered by Kundan Edifice Ltd to its clients include tech info clarity, drawing design, sample for confirmation, production trails, actual production, branding, packaging, and all relevant logistics management. The products manufactured by Kundan Edifice Ltd find application in areas like cove lighting, profile lighting, car interiors, car exteriors, two-wheelers, indoor decorations, festival decorations, signages, back-lit panel for outdoor advertising, outdoor decorations, underwater lighting, decoration of building facades, lighting for construction demarcation, neon flex lights and other decorative lights and articles for enhancing the feel of homes and offices.

The company was promoted by Divyansh Gupta and Vijaya Gupta while Mallika Gupta and Shubhang Gupta are also part of the promoter group. The promoter holding (including the promoter group) in the company currently stands at 99%. However, post the fresh issue of shares and the IPO, the promoter equity holding share will be diluted. The fresh funds will be used for meeting the incremental working capital needs as well as general corporate purposes. While Fedex Securities Private Ltd will be the lead manager to the issue, Cameo Corporate Services Ltd will be the registrar to the issue.