Mangalam Electrical IPO: Day 3 Subscription Status, Allotment Chances, and Listing Gain Expectations
Welcome to a detailed analysis of the Mangalam Electrical IPO! Today marked the final day to apply for this IPO. In this article, we delve into the Day 3 subscription status, assess the allotment chances, and discuss the potential listing gains based on the current Grey Market Premium (GMP).
Mangalam Electrical IPO: Key Details
The Mangalam Electrical IPO was open for application from August 20th and closed on August 22nd. August 21st was the second day for applications.
- Face Value: ₹10 per equity share
- Cut-off Price: ₹561 (Upper Price Band)
- Lot Size: Applicants selected 26 equity shares per lot to ensure allotment.
- Issue Size: ₹400 Crores
- Issue Type: This was a fresh issue, meaning all funds raised go to the company, with no Offer For Sale by promoters or existing shareholders.
- Listing: The company’s shares will be listed on both BSE and NSE.
- Allocation:
- Qualified Institutional Buyers (QIBs): 50% of the total issue size
- Retail Individual Investors: 35% of the total issue size (requiring a minimum application amount of ₹15,000)
- High Net-worth Individuals (HNIs): 15% of the total issue size
Minimum Application Amounts
- Retail (1 Lot): ₹14,586
- Small HNI: ₹2,42,046
- Big HNI: ₹1,643,434
Anchor Investor Details
Anchor investors were offered 2,139,220 equity shares on August 19th, valued at ₹120 Crores.
- Lock-in Period:
- 50% of the shares (worth ₹60 Crores) can be sold after 30 days, with the important date being September 24th.
- The remaining 50% of the shares (worth ₹60 Crores) can be sold after 90 days, with the important date being November 3rd.
Day 3 Subscription Status
The Mangalam Electrical IPO saw varying responses across different categories by the close of Day 3:
- Overall Subscription: The IPO was subscribed 9.94 times in total. For 4,910,000 equity shares offered, bids were received for 49,614,812 equity shares, amounting to ₹2783 Crores.
- QIB Category: This segment was subscribed 11.09 times. Against 1,426,420 equity shares offered, bids were placed for 15,821,720 equity shares, totaling ₹888 Crores. QIB participation picked up in the final hours, providing significant support.
- HNI Category (Total): The HNI segment was subscribed 19.77 times (nearly 20 times). For 1,069,519 equity shares, bids were received for 21,145,384 equity shares, amounting to ₹1186 Crores.
- Big HNI: This sub-category was subscribed 20.05 times. For 713,000 equity shares, bids were received for 14,295,000 equity shares, totaling ₹801 Crores.
- Small HNI: This sub-category (applications between ₹2 lakh and ₹10 lakh) was subscribed 19.21 times. For 356,000 equity shares, bids were received for 6,849,000 equity shares, totaling ₹384 Crores.
- Retail Category: Retail investors subscribed to the IPO 5.07 times. Against 2,495,434 equity shares, bids were received for 12,647,726 equity shares, totaling ₹79 Crores.
Subscription Trend
The IPO initially received a subdued response:
- Day 1: 0.57 times subscribed.
- Day 2: 2.8 times subscribed.
While the QIB response was not as strong as expected initially, it did improve significantly by the end of Day 3.
Allotment Chances
Based on the subscription numbers, here are the estimated allotment chances:
- Big HNI: Approximately 1 out of 4 applications may receive an allotment.
- Retail Individual Investor: Approximately 1 out of 4 applications may receive an allotment.
- Small HNI: Approximately 1 out of 17 applications may receive an allotment.
Important Dates for Investors
- Allotment Status: August 25th (Monday)
- Refund Initiation: August 26th
- Shares Credited to Demat Account: August 26th
- Listing Date (BSE & NSE): August 28th
Promoter Holdings
- Pre-IPO: 100%
- Post-IPO: 74.19%
Grey Market Premium (GMP) and Listing Gain Expectations
The current Grey Market Premium (GMP) for Mangalam Electrical IPO is ₹12.
- Expected Listing Gain: Approximately 2%.
- Estimated Listing Price: ₹573 (Cut-off Price of ₹561 + GMP of ₹12).
- Listing Gain per Lot: Approximately ₹314 per lot.
The actual listing gain will heavily depend on prevailing market conditions on the listing day.
Disclaimer: This article is based solely on the information provided in the YouTube transcript and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.
