Welcome to a detailed analysis of the Regal Resources IPO following the close of its first day of subscription. This article will delve into the Day 1 subscription status, evaluating its impact on allotment chances for investors across various categories, and assessing the current Grey Market Premium (GMP).
Anchor Investor Details
Regal Resources successfully allocated shares to anchor investors, totaling approximately ₹92 crore. These allocated shares include specific lock-in periods: 50% can be sold after 30 days, and the remaining 50% after 90 days. A total of 899,856 equity shares, valued at ₹91.7 crore, were allocated to these anchor investors.
Key anchor investors and their respective allocations include:
- Taurus Mutual Fund: Approximately 16% (across two different schemes).
- VPK Global Venture Funds: 16.36% of the total anchor investor portion.
- Bena Capital: Approximately 10%.
- Anthem Investment & Infrastructure Limited: 7.63%.
- Whole Ventures Capitals: Approximately 5.45%.
- Universal S.O.M.O General Funds: 5.45%.
- Geeta Global Funds: 5.45%.
The list of anchor investors appears decent, and the IPO has garnered a positive response after its first day.
Regal Resources IPO Key Dates
The Regal Resources IPO opened today (first day of application has concluded).
- IPO Close Date: August 14th
- Allotment Date: August 18th
- Refund Initiation Date (if not allotted): August 19th
- Demat Credit Date (if allotted): August 19th
- Listing Date (BSE & NSE): August 20th
For anchor investors, the opportunity to sell 50% of their shares will arise on September 17th, and the remaining 50% on November 16th.
IPO Details and Issue Structure
The face value of the company’s shares is ₹5 per share. Investors must select the upper price band of ₹102 per equity share when applying. The minimum application lot size is 144 equity shares.
- Total Issue Size: ₹306 crore
- Fresh Issue: ₹210 crore (proceeds go to the company)
- Offer For Sale (OFS): ₹96 crore
- IPO Type: Book Building IPO, set to list on both BSE and NSE.
The total issue size is distributed as follows:
- Qualified Institutional Buyers (QIBs): 50%
- Non-Institutional Investors (HNIs): 15%
- Retail Investors: 35%
Application Amounts:
- Minimum Retail Application: ₹14,688 (for one lot of 144 shares)
- Minimum Small HNI Application: ₹25,632
- Minimum Big HNI Application: ₹13,472
Promoter Holding:
- Pre-IPO Promoter Holding: 99.56%
- Post-IPO Promoter Holding: 70.45%
Day 1 Subscription Status Overview
The Regal Resources IPO has shown a strong subscription response on Day 1.
Overall Subscription: The IPO has been subscribed 5.94 times, with bids received for 12.47 crore equity shares against 2.10 crore shares on offer, amounting to a total bid value of ₹1,272 crore. This indicates a robust initial demand for the IPO.
Category-wise Subscription:
Qualified Institutional Buyers (QIBs) Subscription
The QIB portion has been subscribed 2.94 times. This is a positive indicator as the category is already oversubscribed on the first day. Bids were received for 1.76 crore equity shares against 60 lakh shares on offer, with a total bid value of ₹180 crore.
Non-Institutional Investors (HNIs) Subscription
The HNI category has seen significant interest, being subscribed 10.77 times. Bids for 4.84 crore shares were received against 45 lakh shares on offer, valuing at ₹494 crore.
Within the HNI category:
- Big HNIs: This sub-category has been subscribed 10.16 times. With 30 lakh shares on offer, bids were received for 3.04 crore shares, amounting to ₹310 crore. Allotment chances for Big HNI investors are relatively higher, with approximately one out of two applications expected to receive an allotment. This category is currently showing the highest likelihood of allotment.
- Small HNIs: This sub-category has been subscribed 12 times. Against 15 lakh shares on offer, bids for 1.79 crore shares were received, valuing at ₹183 crore. Small HNI investors currently face the lowest allotment chances among all HNI categories due to the high oversubscription.
Retail Investors Subscription
The retail portion has been subscribed 5.59 times. Bids were received for 5.86 crore equity shares against 1.05 crore shares on offer, with a total bid value of ₹598 crore.
Grey Market Premium (GMP) and Listing Gain Outlook
Following the excellent response on Day 1, the Grey Market Premium (GMP) for Regal Resources IPO has increased from ₹22 to ₹25.
Based on the current GMP, the estimated listing price for the IPO is ₹127. This suggests a potential listing gain of approximately 24.5%. For a single lot, investors could anticipate a listing gain of around ₹3,600, according to the current GMP trends.
Stay tuned for further updates as the IPO progresses, including final allotment chances based on the complete subscription figures.
