Supreme Power Equipment IPO Allotment Status

Understand the basics of the Supreme Power Equipment Ltd IPO

The stock of Supreme Power Equipment Ltd has a face value of ₹10 per share and it is a book building issue with the price band for the IPO fixed in the range of ₹61 to ₹65 per share. The Supreme Power Equipment IPO has only a fresh issue component and no offer for sale (OFS) portion. The fresh issue portion of the IPO is EPS dilutive and also equity dilutive. Supreme Power Equipment Ltd will issue a total of 71,80,000 shares (71.80 lakh shares), which at the upper band IPO price of ₹65 per share aggregates to a fresh fund raising of ₹46.67 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also double up as the overall IPO size. Fresh offers tend to be EPS and equity dilutive.

Therefore, the total IPO size will also comprise of the issue of 71,80,000 shares (71.80 lakh shares) which at the upper IPO band price of ₹65 per share will aggregate to overall IPO size of ₹46.67 crore. Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 9,32,000 shares to Share India Securities Ltd (market maker) to enable them to provide two-way quotes to ensure liquidity and low basis costs post listing. The promoter stake will be diluted post the IPO from 79.37% to 57.54%. The company will use the fresh funds to meet its capex and to fund working capital gaps. Narnolia Financial Services  Ltd will be the lead manager to the issue, and Purva Share Registry India Private Ltd will be the registrar to the issue.

Checking allotment status of Supreme Power Equipment Ltd IPO

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 for the mainboard IPOs and for BSE SME IPOs. If you have applied for the IPO, you can check your allotment status only on the website of the IPO registrar, Purva Share Registry India Private Ltd. Alternatively, if your broker provides you a link to access the allotment status, you can do the same. Here are the steps that you need to follow to check allotment status.

Checking the allotment status of Supreme Power Equipment Ltd on the website of Purva Share Registry India Private Ltd (Registrar to IPO)

Visit the Purva Share Registry India Private Ltd registrar website for IPO status by clicking on the link below:

https://www.purvashare.com/queries/

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 is also a way to access this page via the home page of Purva Share Registry Private Ltd by clicking on the Investor services dropdown on the home page and then clicking on the IPO Query link displayed prominently underneath it. It all works the same.

Here, as soon as you click on the link, you are brought to the main landing page. On the top of the page will be the option to select the company for which you want to check the allotment status. Here the company will be available on the drop down list only after the allotment status is finalized on 27th December 2023. You can then select the stock of Supreme Power Equipment Ltd IPO from the drop down list to check the allotment status. 
This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Supreme Power Equipment Ltd from the drop down box. The allotment status will be finalized on 27th December 2023, so in this case, you can access the details on the registrar website either late on 27th December 2023 or by middle of 28th December 2023. Once the company is selected from the dropdown box, you have 2 methods to check the allotment status for the IPO.

• Firstly, 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.

• Secondly, 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 Supreme Power Equipment 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 28th December 2023.

How allocation quota and subscription impact basis of allotment

Here is a quick look at how the allocation was made across different categories of investors in the IPO of Supreme Power Equipment Ltd.

The response to the IPO of Supreme Power Equipment Ltd was very strong and it was subscribed 262.60X overall at the close of bidding on 26th December 2023. The HNI / NII segment saw robust subscription of 489.10X, while the retail portion saw strong subscription of 264.48X. Even the QIB investors saw subscription of 88.98X. The table below captures the overall allocation of shares with the oversubscription details as of the close of the IPO on 26th December 2023. Normally, higher the subscription levels, the lower are the chances of allotment; so, you can look at the subscription levels below and take a call on the chances of allotment in the IPO.

The probability of allotment is inversely related to the extent of subscription. In the above case, since the retail and the HNI portion have got substantially oversubscribed, the chances of allotment are quite low. However, it must be noted that you need to wait for the allotment status to be finalized before you can take any viable call on this.

With the IPO closed for subscription at the end of December 26th, 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 27th December 2023 while the refunds would be initiated on 28th December 2023. The shares of Supreme Power Equipment Ltd (ISIN - INE0QHG01026) would be credited to the demat accounts of eligible shareholders by the close of 28th December 2023 while the stock of Supreme Power Equipment Ltd is expected to be listed on 29th December 2023. The listing will happen on the NSE SME segment for small companies, which is distinct from the regular mainboard IPO space.