Tridhya Tech IPO Final Subscription Details

Tanushree Jaiswal 5th July 2023 - 10:39 pm

The IPO of Tridhya Tech Ltd closed on Wednesday, 05th July 2023. The IPO had opened for subscription on 30th June 2023. Let us look at the final subscription status of Tridhya Tech Ltd at the close of subscription on 05th July 2023.

A quick word on Tridhya Tech Ltd and the SME IPO

Tridhya Tech Ltd, is an SME IPO on the NSE which opened for subscription on 30th June 2023. The company, Tridhya Tech Ltd, was incorporated in 2018 to develop software products and other similar solutions for clients. Tridhya provides IT consulting services to sectors and verticals that include ecommerce, real estate, transport, logistics, insurance etc. In the realm of ecommerce, the company also provides enterprise content management solutions, bespoke web management, development of mobile apps, API development, support, front end design, graphical user interface (GUI) etc.

Tridhya Tech handles the complete life cycle of the software solution, which includes product concept, product design, architecture, coding, testing, and deploying in test environment as well as in the real live environment. Its recent inorganic additions to its business included Concentric IT Services, Basic Root Technologies, and Vedity Software. Tridhya also has a strong global presence with clients located in Australia, Canada, Estonia, France, Germany, Israel, Italy, Japan, Mauritius, the Netherlands, Qatar, Singapore, UK, UAE, the US etc. It also has a strong domestic franchise, apart from the global franchise.

The ₹26.41 crore IPO of Tridhya Tech Ltd comprised entirely of a fresh issue with no offer for sale component in it. The total SME IPO of Tridhya Tech Ltd entails issue of 62.88 lakh shares which at the upper band of the price range at ₹42 per share aggregates to ₹26.41 crore. The stock has a face value of ₹10 and the price band is ₹35 to ₹42. The retail bidders can bid in minimum lot size of 3,000 shares each. Thus, the minimum investment of ₹126,000 in the IPO as the base limit. That is also the maximum that a retail investor can apply for in the particular IPO.

HNIs can invest in 2 lots of 6,000 shares worth ₹252,000 as the bare minimum investment. There is no upper limit for the HNI / NII category. Tridhya Tech Ltd will deploy the funds for repayment of existing loans and for working capital needs of the company. Post the IPO, the promoter equity in the company will get diluted from 80.80% to 58.98%. The issue is lead managed by Interactive Financial Services Ltd, while Link Intime India Private 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 05th July 2023.

Final subscription status of Tridhya Tech Ltd

Here is the subscription status of the Tridhya Tech Ltd IPO as at close on 05th July 2023.

Investor Category	Subscription (times)	Shares bid for	Total Amount (₹ Cr.)
Qualified Institutions	15.62	2,42,79,000	101.97
Non-Institutional Buyers	181.72	16,30,89,000	684.97
Retail Investors	67.62	14,13,63,000	593.72
Total	72.38	32,87,31,000	1,380.67
Total Applications : 47,121 (67.70 times)

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.

Anchor Investor Shares Offered	14,31,000 shares (22.76%)
Market Maker Shares Offered	3,15,000 shares (5.01%)
QIB Shares Offered	15,54,000 shares (24.71%)
NII (HNI) Shares Offered	8,97,450 shares (14.27%)
Retail Shares Offered	20,90,550 shares (33.25%)
Total Shares Offered	62,88,000 shares (100%)

The company also did an anchor placement of share to the tune of 14.31 lakh shares which constitutes 22.76% of the total IPO size. The anchor placement was done one day prior to the opening of the IPO. A total of 14.31 lakh shares were allocated to just 2 anchor investors as shown in the table below.

Name of Anchor Investor	No. of Shares Allocated	Bid Price Per Share (₹)	Anchor Investor Portion (%)	Total Amount Allocated (₹)
Craft Emerging Market Fund – Elite Capital Fund	9,54,000	₹ 42	66.67%	₹ 4,00,68,000
Craft Emerging Market Fund – Citadel Capital Fund	4,77,000	₹ 42	33.33%	₹ 2,00,34,000
Total Anchor Allocation	14,31,000		100%	₹ 6,01,02,000

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 Tridhya Tech Ltd IPO.

Date	QIB	NII**	Retail	Total
Day 1 (Jun 30, 2023)	0.00	0.10	0.59	0.29
Day 2 (Jul 03, 2023)	0.55	0.60	2.36	1.39
Day 3 (Jul 04, 2023)	0.55	2.61	7.32	4.07
Day 4 (Jul 05, 2023)	15.62	181.72	67.62	72.38

It is clear from the above table that while the retail portion got fully subscribed only on the second day of the IPO and even the HNI / NII portion got fully subscribed only on the second day. However, the QIB portion was fully subscribed only on the last day as is the normal practice. However, the overall IPO was also fully subscribed on the second day 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 315,000 shares to Economy Broking Ltd for market making, which has been included in the HNI / NII quota.

The IPO of Tridhya Tech Ltd opened for subscription on 30th June 2023 and closed for subscription on 05th July 2023 (both days inclusive). The basis of allotment will be finalized on 10th July 2023 and the refunds will be initiated on 11th July 2023. In addition, the demat credits are expected to happen on 12th July 2023 and the stock is scheduled to list on 13th July 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.