Sungarner Energies IPO : How to check the Allotment Status

The ₹5.31 crore IPO of Sungarner Energies Ltd consists entirely of a fresh issue of shares with no offer for sale (OFS) component in the IPO. The company has issued a total of 6,40,000 shares (6.40 lakh shares) at a fixed price of ₹83 per share resulting in total IPO size of ₹5.31 crore. The issue is split into retail and HNI portion with a small allocation for the market maker to the IPO. There is no dedicated QIB allocation but they can apply along with the HNI / NIIs in the non-retail portion. 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 Monday, 28th August 2023, the refunds will be initiated on 29th August 2023, demat credits will be finalized on 30th August 2023, while the stock of Sungarner Energies Ltd will get listed on the NSE SME Emerge segment on 31st August 2023. The company had a pre-IPO promoter holding of 84.94% and post the IPO, the promoter stake in Sungarner Energies Ltd will stand reduced to 61.49%. On listing, the company will have an indicative P/E ratio of 13.07X, which is reasonable for the sector.

How to check the allotment status. Since this is an NSE SME IPO, there is no facility to check on the National Stock Exchange (NSE) 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 of Sungarner Energies Ltd, 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 Sungarner Energies 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 once you reach the landing page, 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 Sungarner Energies Ltd on the list around 28th August 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 the next screen.

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Sungarner Energies Ltd from the dropdown box. The allotment status will be finalized on Monday, 28th August 2023, so in this case, you can access the details on the registrar website either late on 28th August 2023 or by middle of 29th August 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 Sungarner Energies 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 30th August 2023. 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 Sungarner Energies Ltd got.

Subscription response to the IPO of Sungarner Energies Ltd.

The response to the IPO of Sungarner Energies Ltd was moderate as the overall issue was subscribed 152.40X at the close of bidding on 23rd August 2023 which is well above the median subscription that the NSE SME IPOs have been getting in general. Out of the overall bids received, the retail segment saw 192.93 times subscription and the non-retail HNI / NII portion saw 110.59 times subscription. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 23rd August 2023.
 

Quick word on the business profile of Sungarner Energies Ltd

Sungarner Energies Ltd was incorporated in the year 2015. The company is engaged in the business of manufacturing environment friendly products like Solar Inverters, Online UPS Systems, EV Chargers, and Lead Acid Batteries, which are some of the key inputs that go into the generation of solar energy and are also key inputs of solar and renewable energy related equipment. The company started off as a design engineering and solar EPC company and later diversified into higher end products in its quest for margins. Today, the company makes power electronics and energy storage products also. Sungarner Energies Ltd also producers lead acid batteries of capacities ranging from 12 Volts 40 ampere-hours to 12 volts 300 ampere-hours.

Sungarner Energies Ltd has also obtained a WMI (world manufacturer identifier) code for the manufacture of EV Vehicles. This product is currently only in the prototype stage and there is still time for full-scale manufacturing of EV Vehicles. The major clients of Sungarner Energies Ltd come from the northern states of Haryana, UP, and Rajasthan as well as the eastern states of Bihar and Assam. The company has also established a total of 6 service Centres in India, across most of its key markets. At present, the company is planning to expand its footprint through additional 500 Franchisees across major Districts of India by the end of 2025, a model that would be more scalable and less capital expensive. Sungarner Energies Ltd has also started exports in last 2 years and currently exports its products to countries like Nigeria, Lebanon, Nepal, Dubai, and Bhutan.

The fresh issue portion will be used to fund working capital needs and for general corporate purposes. The issue will be lead managed by Fast Track Finsec Private Ltd while Skyline Financial Services Ltd will be the registrars to the SME IPO of Sungarner Energies Ltd.