Welcome! This article provides a detailed look at the Vakrangee Engineering IPO’s subscription status after its first day of bidding. We’ll explore the participation across Qualified Institutional Buyers (QIBs), Non-Institutional Investors (HNIs), and Retail Individual Investors (RIIs), and highlight any positive trends that emerged. Additionally, we’ll delve into the specifics of the anchor investor allocation and other crucial IPO details.
Vakrangee Engineering IPO Day 1 Subscription Overview
The Vakrangee Engineering IPO saw significant initial interest, subscribing 2.48 times by the close of its first day. Against 5.57 crore equity shares offered, bids for 13.79 crore equity shares were received, totaling approximately ₹1,338 crore. If this momentum continues into the remaining bidding days, particularly on August 28th, the IPO is expected to achieve robust subscription numbers by its final day.
Detailed Subscription Breakup by Category
Here’s a breakdown of the subscription status across different investor categories as of Day 1:
- Qualified Institutional Buyers (QIBs): The QIB segment was subscribed 0.43 times. Bids were received for 68 lakh equity shares against an offer of 1.59 crore shares, amounting to approximately ₹66 crore. This initial response from QIBs is considered fair for the first day.
- Non-Institutional Investors (HNIs): The HNI category showed strong interest, subscribing 5.38 times. Bids for 6.41 crore equity shares were placed against 1.19 crore shares offered, totaling around ₹622 crore.
- Big HNI: Within the HNI category, the Big HNI segment (applications above ₹10 lakhs) was subscribed 5.72 times. It received bids for 4.55 crore shares against 79.58 lakh shares offered, valued at approximately ₹442 crore. This category currently shows the highest chance of allotment.
- Small HNI: The Small HNI segment (applications between ₹2 lakhs and ₹10 lakhs) was subscribed 4.69 times. Bids were received for 1.86 crore shares against 39.79 lakh shares offered, worth about ₹180 crore.
- Retail Individual Investors (RIIs): Retail investors also participated actively, subscribing 2.40 times. Bids for 6.69 crore equity shares were received against 2.78 crore shares offered, amounting to approximately ₹649 crore.
Vakrangee Engineering IPO Anchor Investor Details
The company’s anchor investor list was finalized late last night. A total of 2,38,76,287 equity shares, valued at approximately ₹232 crore, were allocated to anchor investors.
Lock-up Periods for Anchor Investors:
- 50% of the allocated shares will be available for sale after 30 days, specifically on October 1st.
- The remaining 50% of shares will be available for sale after 90 days, with November 13th being the important date.
Key Anchor Investors and Their Allocations: Prominent institutional and mutual funds participating as anchor investors include:
- Bank of India Mutual Fund: Allocated shares through various schemes (10%, 2%, 0.3%, 0.1%).
- UTI Mutual Fund: Allocated 4.3% through one scheme.
- Nippon India Equity Opportunity Funds: Allocated 8.6%.
- LIC Funds and Negen Undiscovered Funds: Each allocated 8.6%.
- SBI General Insurance Company: Allocated 8.6%.
- Samco Mutual Funds: Allocated 2.2%.
- 361° Equity Opportunity Funds: Allocated 2.2%.
- VPJ Global Venture Funds: Allocated 4.3%.
- Société Générale: Allocated 11.5%.
Overall, the anchor investor list includes one to two foreign institutional investor (FII) names, with the majority being domestic institutional investors (DIIs) participating through various mutual fund schemes. Approximately 2.31 crore shares were allocated to these anchor investors.
Key Dates and IPO Schedule
It is important to note the key dates for the Vakrangee Engineering IPO:
- IPO Open Date: August 26th
- IPO Closed (Market Holiday): August 27th (No applications can be made on this day)
- Remaining Application Dates: August 28th and August 29th
- Last Date to Apply: August 29th
- Allotment Finalization: September 1st
- Initiation of Refunds: September 2nd (for non-allotted applications)
- Credit of Shares to Demat Account: September 2nd (for allotted applications)
- Listing Date: September 3rd (on both BSE and NSE)
IPO Basics & Issue Details
Here are some fundamental details about the Vakrangee Engineering IPO:
- Face Value: ₹1 per equity share
- Upper Price Band: ₹97 per equity share
- Minimum Bid Quantity: 148 equity shares (for one lot)
- Total Issue Size: ₹772 crore
- Fresh Issue: ₹721 crore (proceeds go to the company)
- Offer for Sale (OFS): ₹51 crore
- Issue Size Distribution:
- QIBs: 50%
- Retailers: 35%
- HNIs: 15%
- Minimum Application Amounts:
- Retail (1 Lot): ₹14,356
- Small HNI: Minimum ₹2,98,400
- Big HNI: Minimum ₹14,92,000
Vakrangee Engineering IPO Grey Market Premium (GMP)
As of today, the Grey Market Premium (GMP) for Vakrangee Engineering IPO is ₹18. Based on the upper price band of ₹97, this suggests an implied listing price of approximately ₹115 per share (₹97 + ₹18). This translates to an estimated listing gain of around 19%, potentially yielding approximately ₹2,700 per lot for investors.
Whether you have already applied for this IPO or are planning to do so, we encourage you to share your thoughts in the comments section below.
