HRH Next Services IPO Allotment Status

About the HRH Next Services Ltd IPO

The  IPO of HRH Next Services Ltd has a face value of ₹10 per share and it is fixed price issue. The issue price for the IPO has been fixed at ₹36 per share. The HRH Next Services IPO has only a fresh issue component and no offer for sale (OFS) portion. While the fresh issue portion is EPS dilutive and equity dilutive, the OFS is just a transfer of ownership and  hence neither EPS or equity dilutive. The fresh portion of the IPO of HRH Next Services Ltd entails the issue of 26,58,000 shares (26.58 lakh shares), which at the fixed IPO price of ₹36 per share aggregates to a fresh fund raising of ₹9.57 crore. Since there is no offer for sale (OFS) portion, the fresh issue size doubles up as the overall IPO too . The overall IPO size will also comprise of the issue of 26,58,000 shares (26.58 lakh shares) at ₹36 per share which will aggregate to overall IPO size of ₹9.57 crore.
Market makers, promoters, and lead managers

Like every SME IPO, the IPO of HRH Next Services Ltd also has a market making portion with a market maker inventory allocation of 1,35,000 shares. The market maker for the issue is Nikunj Stock Brokers Ltd and they will provide two-way quotes to ensure liquidity on the counter and low basis costs. The promoter holding in the company will get diluted post the IPO from 97.88% to 69.61%. The company will use the fresh funds for expansion of its services via two call centres, capex for new computer system and for meeting working capital needs. Finshore Management Services Ltd will be the lead manager to the issue, and Cameo Corporate Services Ltd will be the registrar to the issue. The market maker for the issue is Nikunj Stock Brokers Ltd.

How and when to check allotment status online

How to check the allotment status. Since this is an NSE SME IPO, there is no facility to check on the NSE stock exchange website. Also, the 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 HRH Next Services 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 HRH Next Services Ltd on the list around 01st January 2024 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.

Input Options to check your allotment status

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select HRH Next Services Ltd from the dropdown box. The allotment status will be finalized on 01st January 2024, so in this case, you can access the details on the registrar website either late on 01st January 2024 or by middle of 02nd January 2024. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO. The preferred method, out of the 3 options, 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. In case you find that the captcha code is not too clear, 

The IPO status with number of shares of HRH Next Services Ltd allotted will be displayed on the screen. The screen will show the name of the first holder of the demat account, the number of allotted shares, the refund amount (if any), refund mode (cheque / ECS / ASBA) and the query number.

You can save a screenshot of the screen for future reference. Once again, you can verify the demat credit by the close of 02nd January 2024 with the following details viz. (ISIN - INE0R3501012). 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 HRH Next Services Ltd got.

Subscription response to the IPO of HRH Next Services Ltd

The response to the IPO of HRH Next Services Ltd was strong as the overall issue was subscribed 66.29X at the close of bidding on 29th December 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 63.61 times subscription and the non-retail HNI / NII portion saw 66.91 times subscription. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 29th December 2023.

The issue has been heavily subscribed; hence your chances of allotment would proportionately reduce. Investors must keep these calculations in mind while checking the allotment status once it is finalized at the registrar end. Of course, it would eventually depend on the basis of allotment as finalized by the company and approved by exchanges.

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.

With the IPO closed for subscription at the end of December 29th, 2023, 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 01st January 2024 while the refunds would be initiated on 02nd January 2024. The shares of HRH Next Services Ltd (ISIN - INE0R3501012) would be credited to the demat accounts of eligible shareholders by the close of 02nd January 2024 while the stock of HRH Next Services Ltd is expected to be listed on 03rd January 2024. The listing will happen on the NSE SME segment for small companies, which is distinct from the regular mainboard IPO space.