The first day of application for three significant mainboard IPOs – MAB Engineering IPO, Shriram Lotus Developers IPO, and NSDL IPO – has concluded. This article details their Day 1 subscription status, highlights the response from various investor categories, and provides an update on their Grey Market Premium (GMP).
MAB Engineering IPO: Day 1 Subscription & GMP Update
The MAB Engineering IPO opened for applications today, with the second day set for July 31st and the final day on August 1st. The company has set a cut-off price of ₹385, requiring applicants to select a minimum of 38 equity shares per lot.
Issue Details: The total issue size for MAB Engineering is ₹650 crore, comprising a fresh issue of ₹275 crore and an Offer For Sale (OFS) of ₹375 crore. Through the OFS, promoters and existing shareholders will dilute their stake. The company is set to list on both BSE and NSE.
Day 1 Subscription Status: Prior to the public offering, 7,574,000 equity shares were offered to anchor investors, with 7,574,266 equity shares worth ₹291 crore already allocated. The anchor investor list includes notable and strong names.
On its first day, the IPO recorded the following subscription figures:
- QIB Category: Subscribed 0.01 times, with bids for only 10,640 equity shares against an offer of 5,049,000 shares. This indicates a subdued initial response from Qualified Institutional Buyers.
- HNI Category: Subscribed 0.70 times. Within this, the Big HNI segment saw 0.64 times subscription, while Small HNI subscribed 0.81 times.
- Retailers Category: Showed oversubscription at 2.77 times.
- Employee Category: Subscribed 2.26 times.
- Total Subscription: The IPO was subscribed 0.70 times overall on Day 1.
Grey Market Premium (GMP): The Grey Market Premium for MAB Engineering IPO, which was ₹43 in the morning, has now increased to ₹60. Based on this GMP, the IPO is expected to offer listing gains of 15-16%, potentially resulting in a gain of approximately ₹2,000 per lot. Analysts suggest that if the IPO achieves 1.5 to 2 times subscription on the second day, it would be considered a positive response, with expectations for record subscription levels on August 1st.
Shriram Lotus Developers IPO: Strong Day 1 Response & GMP
The Shriram Lotus Developers IPO also opened today, with July 31st being the second application day and August 1st the last. The company’s upper price band is set at ₹150, and applicants must select a minimum of 100 equity shares per lot.
Issue Details: The total issue size for Shriram Lotus Developers is ₹749 crore, which is entirely a fresh issue. This means all funds raised will go directly to the company. The issue distribution allocates 50% of shares to QIBs, 35% to Retailers, and 15% to HNIs.
Day 1 Subscription Status: Anchor investors were offered and allocated 1,579,999 equity shares. The IPO witnessed a robust response on its first day:
- QIB Category: Demonstrated a strong response, subscribing 5.68 times, with bids totaling ₹898 crore. If this momentum continues, the QIB category could see subscriptions of 200-300 times.
- HNI Category: Subscribed 3.32 times, with bids for 2.62 crore equity shares against an offer of 79 lakh shares. Big HNI subscribed 2.69 times, and Small HNI subscribed 4.59 times.
- Retailers Category: Subscribed 3.05 times.
- Employee Category: Subscribed 3.24 times.
- Total Subscription: The IPO was subscribed 3.86 times overall, with bids for 14.27 crore equity shares against 3.70 crore shares offered, amounting to a total bid value of ₹2,141 crore.
Grey Market Premium (GMP): The Grey Market Premium for Shriram Lotus Developers IPO remains stable at ₹44. This suggests an expected listing price of ₹194, translating to potential listing gains of approximately 29%, or about ₹4,400 per lot.
NSDL IPO: First Day Performance & GMP Insights
The NSDL IPO, which opened on July 13th, has also concluded its first day of applications. Tomorrow marks the second day for applications. The company has set a price band of ₹800, and a minimum of 18 equity shares must be selected per lot.
Issue Details: The total issue size for NSDL is ₹4,000 crore. A significant portion, 35% of the shares, is reserved for retail investors, indicating a higher chance of allotment for this category. Anchor investors have already been allocated 1.5 crore equity shares.
Day 1 Subscription Status:
- QIB Category: Subscribed 0.26 times, which is considered a good response given the issue size.
- HNI Category: Subscribed 1.32 times. The Big HNI segment saw more than 1 time subscription, while Small HNI subscribed 1.93 times.
- Retailers Category: Subscribed 0.84 times. For retailers seeking allotment, applying through multiple Demat accounts is often suggested.
- Employee Category: Subscribed 1.83 times.
- Total Subscription: The IPO was subscribed 0.78 times overall, with bids totaling ₹2,192 crore.
Grey Market Premium (GMP): The Grey Market Premium for NSDL IPO has shown an upward movement, increasing from ₹126 in the morning to ₹135. This suggests an expected listing price of ₹935 and a substantial listing gain of approximately 70%.
Comparative Overview & Outlook
Based on the Day 1 subscription figures, the NSDL IPO and Shriram Lotus Developers IPO have both received a good initial response. For MAB Engineering IPO, a strong response is anticipated on the third day of application.
The current Grey Market Premiums suggest varying listing gain potentials: MAB Engineering with 15-16% (₹60 GMP), Shriram Lotus Developers with 29% (₹44 GMP), and NSDL IPO showing a significant 70% potential gain (₹135 GMP). The final decision on application strategy for these IPOs will be discussed in further updates.
