Welcome to this update on two significant Main Board IPOs: Aditya Infotech IPO and Lakshmi India Finance IPO. Today marks the second day for applying to both these IPOs, with tomorrow being the final day. We will delve into the Day 2 subscription figures, discuss the Grey Market Premium (GMP) for both, noting a record surge in one of them, and outline the optimal strategy for tomorrow’s application, including insights into allotment chances.
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Lakshmi India Finance IPO: Day 2 Subscription & GMP Update
Company Overview
The Lakshmi India Finance IPO opened for subscription on July 29th. Today, July 30th, was its second day for application, which has now concluded. Tomorrow, July 31st, will be the last day to apply. The company has a face value of ₹5, and shares will be allotted at this value. The upper price band is set at ₹158, requiring a minimum bid of 94 equity shares per lot. This IPO is a small-issue size of ₹254 crore. The issue comprises a fresh issue of ₹165 crore, which will go to the company, and an Offer For Sale (OFS) of ₹89 crore, where promoters and existing shareholders are diluting their stake. The company will be listed on both BSE and NSE. Shares are allocated as follows: 50% for Qualified Institutional Buyers (QIBs), 35% for Retail investors, and 15% for High Net-worth Individuals (HNIs).
Subscription Status
As of the end of Day 2, the subscription figures for Lakshmi India Finance IPO are as follows:
- Anchor Investors were allocated ₹75 crore worth of equity shares.
- QIBs have subscribed 0.45 times, showing a slight positive momentum that needs to be monitored closely between 12 PM and 2 PM tomorrow.
- The HNI category has not been fully oversubscribed, with Big HNIs subscribing 0.35 times and Small HNIs subscribing 0.79 times. A healthy response usually sees HNI subscription at 4-5 times.
- Retail investors have shown a relatively strong response, subscribing 1.28 times, despite the issue’s small size.
- The Employee category has subscribed 1.01 times.
- Overall, the IPO has been subscribed 0.87 times by the end of Day 2, which is not considered a strong response. On Day 1, the subscription stood at 0.37 times.
Grey Market Premium & Investment Strategy
The Grey Market Premium (GMP) for Lakshmi India Finance IPO currently stands at ₹3, suggesting a potential listing gain of 1-2%. If the response does not improve, the GMP could even drop to zero. For those considering application, it is advisable to observe the QIB response between 12 PM and 2 PM on the final day before making a decision. Updates will be provided via Telegram or video.
Aditya Infotech IPO: Day 2 Subscription & GMP Update
Company Overview
The Aditya Infotech IPO opened on July 29th, witnessing a strong response on Day 1. Today, July 30th, was the second day, and tomorrow, July 31st, will be the last day for applications. The company has a face value of ₹1. The cut-off price is ₹675, with a minimum lot size of 22 equity shares. This is a larger issue with a total size of ₹1300 crore. Notably, only 10% of the issue, equivalent to approximately ₹130 crore, is reserved for Retail investors, which is less than the typical 35%. This limited allocation for retail investors is contributing to record subscription figures in this category, potentially reducing allotment chances. The allocation breakdown is 75% for QIBs, 15% for HNIs, and 10% for Retail investors.
Subscription Status
By the end of Day 2, the Aditya Infotech IPO has garnered significant interest:
- Anchor Investors were fully allocated ₹582 crore worth of equity shares.
- QIBs have subscribed 0.24 times. However, based on the HNI and Retail response, a record oversubscription is anticipated from QIBs on the final day.
- The HNI category has shown an impressive subscription of 11.67 times by the end of Day 2, indicating a very positive response. It is expected to exceed 100 times by tomorrow. Big HNIs (applications above ₹10 lakh) have subscribed 9.82 times, and these applicants currently have the highest chance of allotment, with roughly one in two applications likely to receive shares. Small HNIs have subscribed over 15 times.
- Retail investors have subscribed over 21 times due to the limited allocation. To increase the chances of allotment, applying from multiple demat accounts within the family is recommended. Retail investors have already placed bids worth ₹27 crore.
- The Employee category has subscribed 3.64 times.
- Overall, the IPO has been subscribed over 7 times by the end of Day 2, with more than 14 lakh applications received. Day 1 ended with a subscription of 2 times.
Grey Market Premium & Investment Strategy
The Grey Market Premium (GMP) for Aditya Infotech IPO is strong at ₹285. This suggests a potential listing price of approximately ₹960 and a listing gain of about 42%, translating to around ₹6300 per lot. Given the robust GMP and high subscription, Aditya Infotech IPO should be your first priority. To enhance allotment chances, applying through multiple demat accounts of family members is a recommended strategy.
Conclusion & Recommendation
Considering the strong Grey Market Premium and subscription figures, Aditya Infotech IPO should be given first priority. For those willing to take on higher risk, Lakshmi India Finance IPO can be considered tomorrow, but only after carefully reviewing the QIB subscription updates between 12 PM and 2 PM. Please share in the comments if you have applied or plan to avoid these IPOs.
