Uma Exports Ltd IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 11th December 2022 - 01:49 am

The Rs.60 crore IPO of Uma Exports Ltd, consisting entirely of a fresh issue of shares worth of Rs.60 crore, saw strong retail response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the end of Day-1, Uma Exports IPO was subscribed 2.14 times overall, with some good demand traction seen in the retail segment followed by some buying interest from the HNI / NII segment. The initial public offer (IPO) will close for subscription on Wednesday, 30th March 2022.

As of close of 28th March 2022, out of the 92.31 lakh shares on offer in the IPO, Uma Exports Ltd saw bids for 197.13 lakh shares. This implies an overall subscription of 2.14 times.

The granular break-up of subscriptions was dominated by retail investors followed by the HNI / NII investors with NIL demand seen from QIBs. Normally, it is only on the last day of bidding, the NII/HNI bids and the QIB bids build up substantial momentum. We should get a clearer picture by the end of third day of subscription only.

Uma Exports IPO Subscription Day 1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.00 Times
Non Institutional Investors (NII)	0.46 Times
Retail Individuals	2.90 Times
Employees	Not Applicable
Overall	2.14 times

QIB Portion

Since the size of the IPO was very small at just about Rs.60 crore, there has been no anchor placement of shares done ahead of the IPO. Normally anchor placement is more common among larger issues. The anchor placement has a lower lock-in compared to a pre-IPO placement, but it cannot be issued below the IPO price.

Normally, the anchor placement is a good signal of institutional interest in a stock, ahead of its IPO, and gives market confidence. QIB quota is just 2% of the overall issue while Retail is 69% and HNI / NII portion is 29%.

The QIB portion (net of anchor allocation if any) has a quota of 1.85 lakh shares of which it has got bids for NIL shares at the close of Day-1, implying NIL subscription for QIBs at the close of Day-1.

However, QIB bids typically get bunched on the last day, although we have to wait and see how the response mechanism of QIBs build up in the next 2 days of the IPO.

HNI / NII Portion

The HNI portion got subscribed 0.46X or 46% (getting applications for 12.41 lakh shares against the quota of 26.77 lakh shares). This is a relatively OK response at the close of Day-1 with most of the response coming from corporates followed by HNI individuals.

However, this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only.

Retail Individuals

The retail portion was subscribed a relatively strong 2.90 times at the close of Day-1. Retail interest is normally seen in the first 2 days, so the eventual interest level looks to be building up for Day-2 and partially on Day-3. It must be noted that retail allocation is 69% in this IPO.

For retail investors; out of the 63.69 lakh shares on offer, valid bids were received for 184.72 lakh shares, which included bids for 154.15 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.65-Rs.68) and will close for subscription on 30th March 2022.

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