Saakshi Medtech and Panels IPO Subscribed at 91.65 times

About the Saakshi Medtech and Panels IPO

The IPO of Saakshi Medtech and Panels Ltd opened for subscription on 25th September 2023 and closed on 27th September 2023. The company stock has a face value of ₹10 per share and the IPO price band for the issue has been set in the range of ₹92 to ₹97 per share. The IPO of Saakshi Medtech and Panels Ltd entirely comprises only of a fresh issue with no offer for sale. As part of the fresh issue portion of the IPO, Saakshi Medtech and Panels Ltd will issue 46,56,000 shares (46.56 lakh shares), which at the upper IPO price band of ₹97 per share aggregates to ₹45.16 crore. Since there is no offer for sale (OFS), the overall IPO will also entail the issue of 46,56,000 shares (46.56 lakh shares) worth ₹45.16 crore.

The minimum lot size for the IPO investment will be 1,200 shares. Thus, retail investors can invest a minimum of ₹116,400 (1,200 x ₹97 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 2,400 shares and having a minimum lot value of ₹232,800. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for. Saakshi Medtech and Panels Ltd will deploy the funds for capex in its core business. Post the IPO, the promoter equity in the company will get diluted from 100.00% to 73.63%. The issue is lead managed by Hem Securities Ltd, while Bigshare Securities Private Ltd will be the registrars to the issue.

Final subscription status of Saakshi Medtech and Panels IPO

Here is the subscription status of the Saakshi Medtech and Panels IPO as at close on 27th September 2023.

As can be seen from the above table, the overall IPO of Inspire Films got subscribed 91.65 times. The HNI / NII portion led the stakes with 200.78 times subscription, followed by the Retail portion at 75.88 times and the QIBs at 37.35 times. That is a very good response to an SME IPO, especially if you consider the median subscriptions that similar other SME IPOs have got in the past.

Allocation quota for various categories

The issue was open for retail investors, QIBs and for the HNI / NIIs. There was a broad quota 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. A total of 2,35,200 shares were allocated as market maker portion to Hem Finlease Ltd, 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.

As can be seen, from the above table, the company had allocated 13.248 lakh shares or 28.45% of the original issue size to anchor investors. The anchor allotment was done a day ahead of the IPO opening and the entire anchor allocation was spread across 9 anchor investors. The anchor allocation was done at the upper end of the price band at ₹97 per share, which includes a premium of ₹87 per share.

How subscription built up for the Saakshi Medtech and Panels IPO

The oversubscription of the IPO was dominated by the HNI / NII category followed by the Retail category and the QIB investors in that order. The table below captures the day-wise progression of the subscription status of Saakshi Medtech and Panels Ltd IPO.

It is clear from the above table that while the retail portion and the HNI / NII portion got fully subscribed on the first day of the IPO itself, even the QIB portion got fully subscribed on the first day of the IPO itself. However, all the 3 categories saw bunching of flows on the last day of the IPO. The overall IPO was also 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.  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. The basis of allotment will be finalized on 03rd October 2023 while the stock is expected to be listed on 06th October 2023.