How to check the allotment status of Saroja Pharma Industries IPO

The ₹9.11 crore IPO of Saroja Pharma Industries Ltd comprises entirely of a fresh issue of shares. The fresh issue component of the Saroja Pharma Industries Ltd IPO entails issue of 10.848 lakh shares which at the fixed IPO price of ₹84 per share aggregates to ₹9.11 crore. Since there is no offer for sale (OFS) component, the fresh issue size is also the total size of the IPO. The stock has a face value of ₹10 and retail bidders can bid in minimum lot size of 1,600 share each. Thus, the minimum investment of ₹134,400 in the IPO is the base limit. HNI / NII investors can bid in multiples of 2 lots of 3,200 shares per lot worth ₹268,800 value.

The IPO just closed on Monday 05th September 2023 and at the close of the third day, the issue was subscribed 8.88 times overall. The basis of allotment will be finalized on 08th September 2023 while the refunds to non-allottees will be initiated on the 11th September 2023. The company expects to complete the demat credits to the allottees as of 12th September 2023, while the company plans to list its IPO on the NSE SME Emerge Segment on 13th September 2023. 

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, Saroja Pharma Industries 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 Saroja Pharma Industries 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 08th September 2023. Hence, either late on 08th September 2023 or by middle of 09th September 2023, the allotment status can be checked online on the website of the IPO registrar. Where can the allotment status be checked? 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, Saroja Pharma Industries 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 Saroja Pharma Industries Ltd IPO, the only way is the check on the website of KFIN Technologies, the registrar to the IPO.
 

Checking the allotment status of Saroja Pharma Industries 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 Saroja Pharma Industries 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).

1. 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

2. 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.

3. 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 Saroja Pharma Industries IPO

Here is the final subscription status of the Saroja Pharma Industries IPO as at close on 05th September 2023, at 17.30 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 5.25% allocated to the market makers (Swastika Investmart 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 Saroja Pharma Industries Ltd

Saroja Pharma Industries Ltd was incorporated in 2019 to trade, export, and supply Specialty Chemicals and active pharma ingredients (API). The APIs, or bulk drugs, are the intermediate specialized inputs that go into the manufacture of formulations, which we buy at the chemist shops. Saroja Pharma Industries Ltd deals in 3 categories of products viz. Chemicals, Pharmaceutical Intermediaries and Veterinary Pharma APIs. These APIs are the ingredients used in making finished dosages in the form of capsules, tablets, liquids etc. Saroja Pharma Industries Ltd exports to countries including Egypt, Russia, Jordan, Hong Kong, Singapore, and Pakistan. Here is a quick look at key products it offers under each category.

Under the specialty chemicals category, Saroja Pharma Industries Ltd offers liquid bromine, ethyl acetate, thionyl chloride, and benzyl chloride. Under the Pharma API category, Saroja Pharma Industries Ltd offers; Oxyclozanide BP VET, Bromhexine HCL BP grade, Triclabendazole, Fenbendazole BP VET, Nitroxinil BP VET, Oxfendazole BP VET, Albendazole USP, Rafoxanide BP VET and Febantel EP. Under pharma intermediates, the company offers N-[(4s,6s)-6-methy1-7, 7-dioxido-2-sulfamoy1-5, 6-dihydro-4hthieno[2,3-b]thiopyran-4yl) acetamide and para nitro phenol. Some of the major strengths that the company brings to the table include experienced promoters with a credible track record, a respect management team, highly scalable business model at moderate cost, a wide range of diverse product offerings and a well spread out business operation and revenue base.

The company has been promoted by Biju Gopinathan Nair and Manish Dashrath Kamble. The promoter holding in the company currently stands at 100.00%. However, post the fresh issue of shares, the promoter equity holding share will get diluted proportionately to 73.02%. The fresh issue funds will be used by the company for setting up a new manufacturing unit and also for repayment of some its high cost unsecured loans taken. Swastika Investmart Ltd will be the lead manager to the issue, while KFIN Technologies Ltd will be the registrar.