Vishnusurya Projects and Infra IPO Subscribed 44.11 times

About the Vishnusurya Projects and Infra IPO

The IPO of Vishnusurya Projects and Infra IPO opened for subscription on 29th September 2023 and closed for subscription on 05th October 2023. It was kept open for 4 days. The company stock has a face value of ₹10 per share and it is a fixed price issue. The issue price has been fixed at ₹68 per share. The IPO of Vishnusurya Projects and Infra Ltd has only a fresh issue component and no offer for sale (OFS) in the IPO. As part of the fresh issue portion of the IPO, Vishnusurya Projects and Infra Ltd will issue a total of 73,50,000 shares (73.50 lakh shares). At the fixed price of the IPO at ₹68 per share, the total value of the fresh issue portion aggregates to ₹49.98 crore. As there is no offer for sale, the fresh issue will also be the total size of the issue. Thus, the overall IPO will also entail the issue of 73.50 lakh shares, which at the fixed IPO price of ₹68 per share, aggregates to overall issue size of ₹49.98 crore.

The minimum lot size for the IPO investment will be 2,000 shares. Thus, retail investors can invest a minimum of ₹1,36,000 (2,000 x ₹68 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 4,000 shares and having a minimum lot value of ₹2,72,000. There is no upper limit on what the QIBs as well as what the HNI / NII investors can apply for. The company has been promoted by Bhavani Jayaprakash and post the IPO; the promoter holdings will dilute from 88.74% to 62.23%. IPO funds will be used for working capital funding and for repayment / prepayment of certain outstanding borrowings. Khandwala Securities Ltd will be the lead manager to the issue and Cameo Corporate Services Ltd will be the registrar to the issue. Nikunj Stock Brokers Ltd will be the market maker for the issue.

Final subscription status of Vishnusurya Projects and Infra IPO

Here is the subscription status of the Vishnusurya Projects and Infra IPO as at close on 05th October 2023.

As can be seen from the above table, the overall IPO of Vishnusurya Projects and Infra Ltd got subscribed a healthy 44.11 times. The Retail portion led the stakes with 43.63 times subscription, followed by the HNI / NII portion at 36.32 times. That is a very solid response to an SME IPO, especially if you consider the median subscriptions that similar other SME IPOs have got in the past; then the response of this IPO in terms of subscription is at par.

Allocation quota for various categories

The issue was open for retail investors, and for the HNI / NIIs. There was a broad quota designed for each of the segments viz. 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 3,70,000 shares were allocated as market maker portion to Nikunj Stock Brokers 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 has allocated 5.03% of the issue to the market maker, who will use this inventory to provide buy/sell quotes on the stock post listing in order to provide liquidity on the counter and to reduce the basis risk. There is no QIB allocation in the IPO and also no anchor allotment was made to anchor investors ahead of the opening of the IPO.

How subscription built up for the Vishnusurya Projects and Infra IPO

The oversubscription of the IPO was dominated by the Retail category followed by the HNI / NII category in that order. The table below captures the day-wise progression of the subscription status of Vishnusurya Projects and Infra Ltd IPO. IPO was open for 4 days.

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 of the IPO. In fact, the IPO was kept open for a period of 4 days. Overall, the IPO got fully subscribed at the end of the second day of the IPO. However, all the 3 categories saw bunching of flows on the fourth and last day of the IPO. The overall IPO was fully subscribed on the second day of the IPO although most of the traction came 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 09th October 2023 while the stock is expected to be listed on 12th October 2023. The listing will happen on the NSE SME segment for small companies, which is in contrast to the mainboard IPO space.