Final subscription status of Vasa Denticity SME IPO

The IPO of Vasa Denticity Ltd closed on Thursday, 25th May 2023. The IPO had opened for subscription on 23rd May 2023. Let us look at the final subscription status of Vasa Denticity Ltd at the close of subscription on 25th May 2023. 

A quick word on Vasa Denticity Ltd and the SME IPO

Vasa Denticity IPO on the NSE which opened for subscription on 23rd May 2023. Vasa Denticity was incorporated in the year 2016 for the marketing and distribution of a comprehensive portfolio of Dental Products; both offline and online. Their product portfolio comprises of consumables, instruments, equipment, and accessories for diagnosing, treating, and preventing dental conditions. Their online portal "Dentalkart.com" looks to improve smiles through its internet platform and mobile based application. 

The online channel offered by Vasa Denticity offers more than 300 domestic and global brands with a comprehensive product range of over 10,000 dental products. It manages logistics through its centralized distribution hub measuring 13000 SFT and is located at Gurugram in the Delhi NCR region. Of these, 30 brand or 10% of the brands are proprietary brands of Vasa Denticity. It also has a strong R&D franchise to improve performance of its products. The fresh funds will be used by the company to fund its working capital needs and to also spend on enhancing the brand visibility in the offline and online channels.

The Rs54.07 crore IPO of Vasa Denticity Ltd comprises of a fresh issue and an offer for sale. The total SME IPO of Vasa Denticity Ltd entails issue of 42.24 lakh shares at which at the upper band of the price range at Rs128 per share aggregates to Rs54.07 crore. The stock has a face value of Rs10 and retail bidders can bid in minimum lot size of 1,000 share each. Thus, the minimum investment of Rs128,000 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO. 

HNIs can invest in 2 lots of 2,000 shares worth Rs256,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Vasa Denticity Ltd will deploy the funds for working capital needs of the company and for creating awareness and visibility of the brands. Post the IPO, the promoter equity in the company will get diluted from 95.00% to 69.62%. The issue is lead managed by Hem Securities Ltd, while MAS Services Ltd will be the registrars to the issue. Let us now turn to the final subscription details of the IPO as of the close of subscription on 25th May 2023.

Final subscription status of Vasa Denticity IPO

Here is the subscription status of the Vasa Denticity Ltd IPO as at close on 25th May 2023.

The issue was only open for retail investors, QIBs and for the HNI / NIIs. There was a broad quote designed for each of the segments viz. the QIBs, the retail and the HNI NII. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

However, the above table only accounts for 30.24 lakh shares while the total issue size is 42.24 lakh shares. That is because the balance of 12 lakh shares were allocated earlier as part of the anchor issue to the anchor investors a day ahead of the IPO opening. The anchor allotment was done on 22nd May 2023 and details are as under. The 12 lakh shares were allocated to the anchor investors as below at the upper end of the price band at Rs128.

The oversubscription of the IPO was dominated by the HNI / NIIs followed by the retail investors and the QIB investors in that order. The table below captures the day-wise progression of the subscription status of Vasa Denticity Ltd IPO.

It is clear from the above table that while the retail portion got fully subscribed on the first day of the IPO itself, the HNI / NII portion got fully subscribed only on the second day and the QIB portion on the last day. However, the overall IPO was fully subscribed on the first day itself although most of the traction was seen on the last day. All the 3 categories of investors viz., HNIs / NIIs, retail and QIB categories saw good traction and build up of interest on the last day of the IPO. There is an allocation of 216,000 shares to Hem Finlease for market making, which has been included in the HNI / NII quota.
The IPO of Vasa Denticity opened for subscription on 23rd May 2023 and closed for subscription on 25th May 2023 (both days inclusive). The basis of allotment will be finalized on 30th May 2023 and the refunds will be initiated on 31st May 2023. In addition, the demat credits are expected to happen on 01st June 2023 and the stock is scheduled to list on 02nd June 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated.