Shanti Spintex IPO Day 3: Strong Demand as Issue Subscribed Over 8 Times, Retail Portion Booked Over 11x

Shanti Spintex IPO: Robust Demand Expected as Price Band Set at ₹66-₹70 per Share, Retail Investors Require Minimum ₹140,000 Investment

Shanti Spintex IPO: Allotment Results Anticipated on December 22, Listing on BSE SME Slated for December 27, 2023

Company Background:

• Shanti Spintex Ltd is a denim fabrics manufacturer.

IPO Launch Date:

• The initial public offering (IPO) of Shanti Spintex Ltd was launched on December 19, signaling the commencement of the IPO process.

Nature of IPO:

• The IPO is described as a “book built issue.” A book-built issue is one where the price of the shares is determined based on investor demand during the IPO bidding period.

Closing Date:

• The IPO is set to close today, on December 21. This indicates that investors have a limited period to subscribe to the shares offered in the IPO.

It’s noteworthy that the Shanti Spintex IPO has garnered significant attention and demand from investors. The statement “oversubscribed on the last day of bidding” suggests that the total demand for shares exceeds the number of shares available for subscription.

This oversubscription is often considered a positive sign and reflects strong investor confidence in the company.

Oversubscription can be an indicator of market optimism about the company’s prospects, but it’s important for investors to conduct thorough research and consider various factors before making investment decisions.

The oversubscription status may also impact the allotment process, where the allocation of shares to investors is determined based on the oversubscription ratio.

Allotment Date:

• The Shanti Spintex IPO allotment is anticipated to be finalized on December 22, 2023. This is the date when investors will know the number of shares they have been allotted.

Listing Platform:

• The shares of Shanti Spintex are set to be listed on the BSE SME (Bombay Stock Exchange – Small and Medium Enterprises) platform. SME platforms are designed to facilitate the listing of shares for smaller companies.

Tentative Listing Date:

• The tentative listing date for Shanti Spintex shares on the BSE SME is fixed on December 27, 2023. This is the date when the shares become tradable on the stock exchange, and investors can buy or sell them in the open market.

Shanti Spintex IPO: Strong Demand as Subscriptions Surpass 8x on Last Day.

As of December 21, the last day of the Shanti Spintex IPO bidding process, the subscription rate has reached 8.78 times. Investors have bid for 2.60 crore equity shares, significantly surpassing the 29.68 lakh shares offered in the public issue. This data is current as of 12:45 pm.

Please note that these figures indicate strong demand for the IPO. For the latest updates, it’s recommended to check real-time sources or financial news platforms.

Retail Category:

• The retail category of the IPO has been oversubscribed 11.50 times. This means that the total demand for shares from retail investors is 11.50 times higher than the number of shares available for them in this category.
• Non-Institutional Investors (NII) Category:
• The Non-Institutional Investors (NII) category has been subscribed 8.16 times. This category typically includes high-net-worth individuals and other non-institutional investors.

Qualified Institutional Buyer’s (QIB) Category:

• The Qualified Institutional Buyer’s (QIB) portion has been booked 4.49 times. QIBs are institutional investors such as mutual funds, insurance companies, and other large financial institutions.

Shanti Spintex IPO Details

IPO Size and Opening Date:

• The Shanti Spintex IPO is valued at ₹31.25 crore.
• It opened for public subscription on December 19, indicating the start of the IPO process.

Composition of the IPO:

• The IPO is composed of two parts:
• A fresh issue of 26.88 lakh equity shares, amounting to ₹18.82 crore. This represents new shares issued by the company to raise fresh capital.
• An Offer for Sale (OFS) of 17.76 lakh shares, totaling ₹12.43 crore. The offer for sale involves existing shareholders selling their shares, and the proceeds do not go to the company.

Price Band:

• The Shanti Spintex IPO has a price band set at ₹66 to ₹70 per share. This range indicates the minimum and maximum prices at which investors can bid for the shares during the IPO.

Lot Size:

• The lot size is specified as 2,000 shares. This represents the minimum number of shares that investors need to bid for in a single lot during the IPO.

Minimum Investment for Retail Investors:

• Retail investors are required to invest a minimum amount of ₹140,000 in the Shanti Spintex IPO. This minimum investment is calculated based on the lot size and the lower end of the price band.

Book Running Lead Manager (BRLM):

• The book running lead manager for the Shanti Spintex IPO is Hem Securities. BRLMs play a crucial role in managing the IPO process, including determining the IPO price, coordinating with regulatory authorities, and handling the allocation of shares.

IPO Registrar:

• Kfin Technologies has been appointed as the registrar for the Shanti Spintex IPO. The IPO registrar is responsible for overseeing the share allotment process and maintaining the records of shareholders.

These entities play vital roles in ensuring the smooth functioning of the IPO, from its launch to the listing of shares on the stock exchange. Investors and stakeholders often rely on the services of the book running lead manager and registrar to facilitate various aspects of the IPO.

Shanti Spintex IPO GREY MARKET PREMIMUM Today

The Grey Market Premium (GMP) for Shanti Spintex IPO today is ₹7 per share. This suggests that there is a premium of ₹7 in the grey market compared to the IPO price.

Investors often monitor the Grey Market Premium as an informal indicator of market sentiment and demand for the IPO shares before their official listing on the stock exchange.

If the Grey Market Premium (GMP) today is ₹7 per share and the Shanti Spintex IPO issue price is ₹70 per share, it suggests an estimated listing price of ₹77 per share in the secondary market.

This would represent a 10% premium to the IPO price, indicating positive market sentiment and demand for Shanti Spintex shares.

Investors often use GMP as an informal gauge to estimate the potential listing price and make informed decisions.

However, it’s essential to note that GMP is based on unofficial and speculative trading in the grey market, and actual listing prices may vary. Investors should exercise caution and conduct thorough research before making investment decisions.