Newjaisa Technologies IPO Subscribed at 6.85 times

About the Newjaisa Technologies IPO

Newjaisa Technologies IPO opened on 25th September 2023 and closed for subscription on 27th September 2023. The company has a face value of ₹5 per share and it is a book built issue with an IPO price band of ₹44 to₹47 per share. The IPO of Newjaisa Technologies Ltd entirely comprises of a fresh issue component with no offer for sale (OFS) portion. As part of the fresh issue, Newjaisa Technologies Ltd will issue a total of 84,96,000 shares (84.96 lakh shares), which at the upper band IPO price of ₹47 per share aggregates to total fund raising of ₹39.93 crore. Since there is no OFS portion, the overall issue size of Newjaisa Technologies Ltd will also entail the issue of 84,96,000 shares (84.96 lakh shares), entailing total fund raising of ₹39.93 crore.

The minimum lot size for the IPO investment will be 3,000 shares. Thus, retail investors can invest a minimum of ₹141,000 (3,000 x ₹47 per share) in the IPO. That is also the maximum that the retail investors can invest in the IPO. HNI / NII investors can invest a minimum of 2 lots comprising of 6,000 shares and having a minimum lot value of ₹282,000. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for. The issue is lead managed by Indorient Financial Services Ltd, while Bigshare Services Private Ltd will be the registrars to the issue.

Final subscription status of Newjaisa Technologies IPO

Here is the subscription status of the Newjaisa Technologies IPO as at close on 27th September 2023.

The issue was open for retail investors, QIB investors and for the HNI / NIIs. There was a broad quota designed for each of the segments viz. the retail, QIB and HNI / NII. A total of 4,26,000 shares were allocated as market maker portion to Nikunj Stock Brokers, which will act as a market maker to provide bid-ask liquidity on the counter post listing. Market maker action not only improves liquidity in the counter but also reduces the basis risk. The table below captures the allocation reservation done for each of the categories out of the total number of shares offered in the IPO.

As can be seen, from the above table, the company had allocated 28.46% of its total issue size for anchor allocation, which was completed a day before the opening of the IPO. The company placed a total of 24.18 lakh shares across 5 anchor investors at the upper end of the price range of ₹47 per share, which includes a premium of ₹42 per share.

How subscription built up for the Newjaisa Technologies IPO

The oversubscription of the IPO was dominated by the HNI / NII Investors followed by the retail investors and the QIBs in that order. The table below captures the day-wise progression of the subscription status of Newjaisa Technologies Ltd IPO.

It is clear from the above table that while the QIB and the HNI / NII portion got fully subscribed only on the last day of the IPO, the retail portion got fully subscribed on the second day. However, the overall IPO was fully subscribed only on the last day of the IPO, when most of the traction came in. While the QIB response was relatively tepid, the other 2 categories of investors viz., HNIs / NIIs and retail saw good traction and build-up of interest on the last day of the IPO.  Post the IPO listing, the market maker will offer two way quotes on the stock, using the inventory of shares, and ensure that investors do not have to worry about liquidity and basis risk.