Karnika Industries IPO: How to check the Allotment Status

The IPO of Karnika Industries opened for subscription on 29th September 2023 and closed for subscription on 05th October 2023. The IPO was kept open for a period of 4 days. The company stock has a face value of ₹10 per share and it is a fixed price issue with the IPO price already fixed at ₹76 per share. The IPO of Karnika Industries Ltd has only a fresh issue component and no offer for sale (OFS) component in the IPO. As part of the fresh issue portion of the IPO, Karnika Industries Ltd will issue a total of 32,99,200 shares (32.99 lakh shares approximately). At the fixed price of the IPO price of ₹76 per share, the total value of the fresh issue portion aggregates to ₹25.07 crore. Since there is no offer for sale portion, the fresh issue will also be the total size of the issue. Thus, the overall IPO will also entail the issue of 32,99,200 shares (32.99 lakh shares approximately). At the fixed IPO price of ₹76 per share, the total size of the IPO of Karnika Industries Ltd will be ₹25.07 crore.

The issue is split into retail and HNI portion with a small allocation for the market maker to the IPO. The anchor allotment portion is normally carved out of the QIB portion only, but in this IPO there is neither QIB portion, nor any anchor allocation done. 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 10th October 2023, the refunds will be initiated on 11th October 2023, demat credits will also be finalized on 12th October 2023, while the stock of Karnika Industries Ltd will get listed on the NSE SME Emerge segment on 13th October 2023. The company had a pre-IPO promoter holding of 100.00% and post the IPO, the promoter stake in Karnika Industries Ltd will stand reduced to 73.39%. On listing, the company will have an indicative P/E ratio of 7.57X, which is reasonable for the sector. Its market cap would be around ₹94.24 crore at IPO price.

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, Skyline Financial Services Private Ltd. Here are the steps that you need to follow to check allotment status.

Checking the allotment status of Karnika Industries Ltd on the website of Skyline Financial Services Private Ltd (Registrar to IPO)

Visit the Skyline Financial Services Private Ltd registrar website for IPO status by clicking on the link below:

https://www.skylinerta.com/ipo.php

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 Karnika Industries Ltd on the list around 10th October 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 next screen.

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Karnika Industries Ltd from the dropdown box. The allotment status will be finalized on 10th October 2023, so in this case, you can access the details on the registrar website either late on 10th October 2023 or by middle of 11th October 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.

The IPO status with number of shares of Karnika Industries 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 12th October 2023 or after that. 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 Karnika Industries Ltd got.

Subscription response to the IPO of Karnika Industries Ltd

The response to the IPO of Karnika Industries Ltd was tepid and modest as the overall issue was subscribed just about 3.07X at the close of bidding on 05th October 2023 which is rather tepid and low compared to the median subscription that the NSE SME IPOs have been getting in general. Out of the overall bids received, the retail segment saw 2.91 times subscription and the non-retail HNI / NII portion saw 3.22 times subscription. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 05th October 2023.

The subscription to the IPO is fairly low and that sharply increases the chances of your getting the allotment in the IPO. However, you would have for the basis of allotment to be finalized before checking the status.