Abans Holdings IPO subscribed 1.10 times at close

Abans Holdings IPO worth Rs. 345.60 crore, consisted of a fresh issue of shares of Rs. 102.60 crore and an offer for sale worth Rs. 243 crore. The IPO saw fairly tepid response on Day-1 and Day-2 of the IPO and closed with rather tepid subscription numbers at the close of Day-3. In fact, the company got fully subscribed only on the last day of the IPO. As per the combined bid details put out by the BSE at the close of Day-3, Abans Holdings Ltd IPO was subscribed at 1.10X overall, with best demand coming from the QIB segment, followed by the HNI / NII segment with the retail segment getting actually undersubscribed. In fact, only the institutional segment saw some good traction on the last day. The HNI portion did get through but there was no surge of funding applications coming on the last day of the IPO.

As of close of 15th December 2022, out of the 128 lakh shares on offer in the IPO, Abans Holdings Ltd saw bids for 140.22 lakh shares. This implies an overall subscription of 1.10X. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors. QIB bids and NII bids typically gather most of the momentum on the last day, but that was not the case in this issue as even the final numbers were quite tepid for the HNI / NII investors. However, the QIB bids picked up momentum on the last day and managed to get good enough subscription performance at the end of Day-3.

Abans Holdings Ltd IPO Subscription Day-3

QIB Portion

The company had just 10% allocation to the QIB investors so there was no pre IPO anchor placement done for the IPO. The entire 10% quota allocation was give as part of the public issue of the company only.

The QIB portion (net of anchor allocation, if any, as explained above) has a quota of 12.80 lakh shares of which it has got bids for 52.47 lakh shares at the close of Day-3, implying a subscription ratio of 4.10X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Abans Holdings Ltd IPO subscription overall, the actual demand did not turn out to be quite as robust as expected for the IPO.

HNI / NII Portion

The HNI portion got subscribed 1.48X (getting applications for 56.68 lakh shares against the quota of 38.40 lakh shares). That is a rather tepid response at the close of Day-3 largely because 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, and that was not exactly visible as the overall HNI / NII portion just about added marginally to its heft on the last day. However, the HNI portion did eventually manage to sail through.

Now the NII/HNI portion is reported in two parts viz. bids below Rs10 lakhs (S-HNI) and bids above Rs10 lakhs (B-HNI). The bids above the Rs10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above Rs10 lakh bid category got subscribed 2.15X while the below Rs10 lakh bid category (S-HNIs) got subscribed 0.13X or 13%. This is just for information and is already part of the overall HNI bids explained in the previous para.

Retail Individuals

The retail portion was undersubscribed getting response to the tune of just 0.40X or 40% at the close of Day-3, showing very weak retail appetite. It must be noted that retail allocation is 60% in this IPO. For retail investors; out of the 76.80 lakh shares on offer, valid bids were received for only 31.07 lakh shares, which included bids for 25.16 lakh shares at the cut-off price. The IPO is priced in the band of (Rs. 256 to Rs. 270) and has closed for subscription as of the close of Thursday, 15th December 2022.