Quest Laboratories IPO Allotment Status

About the Quest Laboratories IPO

The stock of Quest Laboratories Ltd has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹93 to ₹97 per share. Being a book built issue, the final price will be discovered within this band. The Quest Laboratories 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, Quest Laboratories Ltd will issue a total of 44,49,600 shares (44.50 lakh shares approximately), which at the upper band IPO price of ₹97 per share aggregates to fresh fund raising of ₹43.16 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 44,49,600 shares (44.50 lakh shares) which at the upper band IPO price of ₹97 per share will aggregate to overall IPO size of ₹43.16 crore.

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,28,000 shares. Rikhav Securities Ltd will be the market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The promoter holding in the company currently stands at 90.36%. However, post the fresh issue of shares in IPO, promoter equity holding share will get diluted to 65.82%. The fresh issue funds will be used by the company for funding the capital expenditure towards purchase of land and machinery for expansion of existing manufacturing facility, and funding working capital needs. Shreni Shares 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 Rikhav Securities Ltd. The IPO of Quest Laboratories Ltd will be listed on the SME IPO segment of the NSE.

Checking the allotment status of Quest Laboratories IPO

How to check the allotment status. 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 of Quest Laboratories IPO on the website of Bigshare Services Private Limited (Registrar to IPO)

Visit the Bigshare Services registrar website for IPO status by clicking on the link below:

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.

What to do, when you reach the landing page?

When you go to the landing page, you will have to select the name of the company first. This company dropdown list will only show the active IPOs, so once the allotment status is finalized, you can select Quest Laboratories Ltd  from the dropdown box. The basis of allotment in this case will be finalized on 21st May 2024, so you will be able to access the details on the registrar website either late on 21st May 2024 or by middle of 22nd May 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 numeric captcha is to ensure that the person accessing the allotment status is a human being and not a bulk robotic access. 

• The second option is that 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. NSDL will be an alphanumeric code. 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 numeric 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. Remember, in a PAN, the first to fifth and the tenth character are alphabets while the sixth to ninth character are numeric characters. 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. Once again, before you see the output, you will be asked to enter a 6-digit numeric Captcha code as given. In case, if it is not clear, you can toggle for more options. 

The IPO status with number of shares of Quest Laboratories 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 May 2024, or later. In case of any complaints or queries, you can email to info@bigshareonline.com or call 022-6263-8200.

IPO 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.

Data Source: Company RHP

The response to the IPO of Quest Laboratories Ltd was strong and it was subscribed by 85.26X overall at the close of bidding on 17th May 2024 with the HNI / NII segment seeing 184.10 times subscription, and the Retail portion seeing 57.63 times subscription. The QIB segment quota (net of anchor allocation) also get subscribed 57.20 times in the IPO. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 17th May 2024. The IPO was kept open for a period of 3 trading days.

Data Source: NSE 

In the above case, the subscription is quite strong for retail and HNI / NII, and that largely makes the chances of allotment in the IPO relatively lower. This subscription is almost at par with the median subscription that SME IPOs on the NSE generally get to see..

Next steps in the IPO of Quest Laboratories IPO

The issue opened for subscription on 15th May 2024 and closed for subscription on 17th May 2024 (both days inclusive). The basis of allotment will be finalized on 21st May 2024 and the refunds will be initiated on 22nd May 2024. In addition, the demat credits are expected to also happen on 22nd May 2024 and the stock will list on 23rd May 2024 on the NSE and the BSE. Go Digit General Insurance Ltd will test the appetite for private sector insurance originating stocks in India. The credits to the demat account to the extent of shares allotted will happen by the close of 22nd May 2024 under ISIN Number (INE0TNW01017).

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 high in the IPO; both in the Retail segment and also in the HNI / NII segment. 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.