Kalahridhaan Trendz IPO Allotment Status

Quick take on the IPO of Kalahridhaan Trendz Ltd 

The stock of Kalahridhaan Trendz Ltd has a face value of ₹10 per share and it is a fixed price issue. The price for the IPO is set at a fixed price level of ₹45 per share. Being a fixed price issue, the issue of price discovery does not arise. The Kalahridhaan Trendz IPO has only a fresh issue component and no offer for sale (OFS) portion. It must be remembered that the fresh issue portion is EPS dilutive and equity dilutive, but OFS is just a transfer of ownership and hence it is not EPS or equity dilutive.

As part of the fresh issue portion of the IPO, Kalahridhaan Trendz Ltd will issue a total of 49,98,000 shares (49.98 lakh shares), which at the fixed IPO price of ₹45 per share aggregates to fresh fund raising of ₹22.49 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also double up as the overall IPO size. Therefore, the overall IPO size will also comprise of the issue of 49,98,000 shares (49.98 lakh shares) which at the upper band IPO price of ₹45 per share will aggregate to overall IPO size of ₹22.49 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,52,000 shares. Sunflower Broking Private Ltd will be the market maker to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. Post the IPO, the market share of the promoters will dilute from 96.22% to 68.24%. The fresh issue funds will be used by the company towards the working capital needs of the company and towards general corporate purposes. Interactive Financial Services Ltd will be the lead manager to the issue, and Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is Sunflower Broking Private Ltd.

How to check allotment status of Kalahridhaan Trendz Ltd?

Since this is an NSE SME IPO, there is no facility to check on the exchange website. On the other hand, the BSE only offers allotment status update on its website for the mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can either check your allotment status on the website of the IPO registrar, Bigshare Services Private Limited; or you can use the broker link provided, in case your broker is giving such a direct linkage. Here are the steps that you need to follow to check allotment status on the registrar website of Bigshare Services Private Ltd.

Checking the allotment status on the website of Bigshare Services Private Limited (Registrar to IPO)

https://www.bigshareonline.com/ipo_Allotment.html

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 Bigshare Services Private Ltd by clicking on the IPO Allotment Status link displayed prominently on the home page. It all works the same, and leads you to the same landing page.

Once you enter the IPO allotment check landing page of Bigshare Services Private Ltd, you are given the choice to select from 3 servers viz. Server 1, Server 2, and Server 3. 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; the output would still be the same. This is just a method to share the server load during peak access times.

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Kalahridhaan Trendz Ltd   from the dropdown box. The basis of allotment will be finalized on 21st February 2024, so in this case, you can access the details on the registrar website either late on 21st February 2024 or by middle of 22nd February 2024. Once the company is selected from the dropdown box, you have 3 methods to check the allotment status for the IPO.

• Firstly, you can access the allotment status using Application Number / CAF Number. The CAF is short for Composite Application Form and it is available on the acknowledgement slip given to you when you submit the IPO application. 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. Before you see the output, you will be asked to enter a 6-digit Captcha code as given. In case, it is not clear, you can toggle for more options. The captcha is to ensure that the person accessing the allotment status is a human being and not a robot. 

• Secondly, you can search by Beneficiary ID of your demat account. From the dropdown box, you must first select the depository name where your demat account is held i.e., NSDL or CDSL. In the case of NSDL, enter the DP id and Client id in separate boxes as provided. 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 both cases. Before you see the output, you will be asked to enter a 6-digit Captcha code as given. In case, it is not clear, you can toggle for more options. The captcha is to ensure that the person accessing the allotment status is a human being and not a robot.

• 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. Before you see the output, you will be asked to enter a 6-digit Captcha code as given. In case, it is not clear, you can toggle for more options. The captcha is to ensure that the person accessing the allotment status is a human being and not a robot.

The IPO status with number of shares of Kalahridhaan Trendz 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 22nd February 2024, or later.

Quota Allocation and Subscriptions: why they matter to allotment status?

Here is a break-up of the total shares issued by the company and its quota allocated for different classes of investors. This is the key to your chances of allotment in the IPO.

The response to the IPO of Kalahridhaan Trendz Ltd was very modest and it was subscribed just about 8.15X overall at the close of bidding on 20th February 2024 with the HNI / NII segment seeing 6.66 times subscription, and the Retail portion seeing 9.63 times subscription. There was no QIB quota allocation in the IPO and hence there also was no anchor allocation made to anchor investors as part of the IPO. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 20th February 2024. The IPO was kept open for a period of 4 trading days.

In the above case, the subscription is quite modest and tepid for retail and HNI / NII, and that largely increases the chances of allotment in the IPO. Of course, it is still best to wait for the IPO basis of allotment to be finalized to get the official version.

Next steps in the IPO of Kalahridhaan Trendz Ltd

With the IPO closed for subscription at the end of 20th February, 2024, 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 21st February, 2024 and the refunds will be initiated on 22nd February, 2024. In addition, the demat credits are also expected to happen on 22nd February, 2024 and the stock is scheduled to list on 23rd February 2024 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The demat credits to the demat account to the extent of allotment will happen by the close of 22nd February 2024 under ISIN Number (INE02M801018).

Investors would do well to remember that the level of subscription is very material as it determines the chances of getting allotment. Normally, higher the subscription ratio, lower the chances of allotment and vice versa. In this case, the subscription levels have been very modest and tepid in the IPO; both in the Retail segment and also in the HNI / NII segment, which increases the chances of allotment. Investors in the IPO need to assess their chances of allotment accordingly. The final status will be known once the basis of allotment is finalized and uploaded for you to check. You can apply the above allotment checking process flow after the basis of allotment is finalized.