Kaushalya Logistics IPO Subscribed 390.88 Times

About the Kaushalya Logistics IPO

The subscription period for Kaushalya Logistics IPO opened on December 29, 2023, and ended on January 3, 2024. Kaushalya Logistics Ltd.’s stock is a book-built issue with a face value of ₹10 per share. For the book-building IPO, the issue price range is 71 to 75 per share. We will find the final price within this range. There is an offer for sale (OFS) and a fresh issue component to Kaushalya Logistics Ltd.’s IPO. While OFS is merely a transfer of ownership, it is neither EPS nor equity dilutive, in contrast to the new issue, which is both.

The Kaushalya Logistics IPO includes a fresh issue section consisting of 33,80,000 shares (33.80 lakh shares). The upper IPO price band of ₹75 per share amounts to a fresh issue size of ₹25.35 crore. 15,00,000 shares (15.00 lakh shares) will be sold during the offer for sale (OFS) phase of the initial public offering (IPO).

The upper IPO price band of ₹75 per share translates to a value of ₹11.25 crore. Promoter Uddhav Poddar will offer 3.75 lakh shares out of the 15 lakh shares offered under the OFS, while the promoter group company Bhumika Realty Private Ltd will offer 11.25 shares. Consequently, 48,80,000 shares will be issued and sold during the entire IPO at the higher IPO price range of ₹75 per share would be worth ₹36.60 crore.

This issue, like all SME IPOs, includes a market-making section with a 2,44,800 share market maker inventory allocation. To guarantee liquidity and cheap basis costs, Nikunj Stock Brokers Ltd., the issue’s market maker, will offer two-way quotes. The promoter stake will be reduced from 99.99% to 72.98% following the IPO. The company will pay back the new loans and use the money for working capital requirements. The issue’s lead manager will be Khandwala Securities Ltd, and its registrar will be Skyline Financial Services Private Ltd. Nikunj Stock Brokers Ltd. is the market maker for Kaushalya Logistics Ltd.’s initial public offering.

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Final subscription status of Kaushalya Logistics IPO

Here is the subscription status of Kaushalya Logistics IPO as of close on 03rd January 2024.

Investor Category	Subscription (times)	Shares Offered	Shares bid for	Total Amount (₹ in crore)
Anchor Investors	1	13,34,000	13,34,000	10.01
Market Maker	1	2,44,800	2,44,800	1.84
QIB Investors	92.62	9,82,400	9,09,92,000	682.44
HNIs / NIIs	847.88	6,96,000	59,01,24,800	4,425.94
Retail Investors	375.44	16,24,400	60,98,72,000	4,574.04
Total	390.88	33,02,800	1,29,09,88,800	9,682.42

The table above illustrates how impressively 390.88 times the entire Kaushalya Logistics Ltd. IPO was subscribed for. With 847.88 times subscriptions, the HNI/NII portion led the race, and the Retail portion came in second with 375.44 times subscriptions. A healthy 92.62 times were subscribed to the QIB portion of the IPO. Considering the median subscriptions that other SME IPOs with comparable characteristics have received in the past, that is a very strong and astute response to one. Strong interest in the IPO has been demonstrated by the subscription from investors in the QIB, retail, and HNI/NII categories.

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Allocation quota for various categories

Retail investors, QIBs, and HNI/NII investors could purchase the issue. Every category, including retail, QIB, and HNI/NII, had a broad quota set aside for them. Nikunj Stock Brokers Ltd. received 2,44,800 shares in total as a market maker portion. This amount will be used as market maker inventory to provide bid-ask liquidity on the counter following listing. Market maker activity lowers the basis risk while simultaneously increasing counter-liquidity. Out of the total number of shares offered in the IPO, the allocation reservations made for each category are shown in the table below.

Investor Category	Share Reservation Quota
Market Maker Shares	2,44,800 shares (5.01% of total issue size)
Anchor Shares Offered	13,34,000 shares (27.33% of total issue size)
QIB Shares Offered	9,82,400 shares (20.12% of total issue size)
NII (HNI) Shares Offered	6,96,000 shares (14.26% of total issue size)
Retail Shares Offered	16,24,400 shares (33.28% of total issue size)
Total Shares Offered	48,81,600 shares (100.00% of total issue size)

The QIB offer to the public decreased from the initial 47.45% of the issue size to 20.12% of the issue size in the aforementioned IPO of Kaushalya Logistics Ltd. as a result of the anchor allocation of 13,34,000 shares being removed from the QIB portion. On December 28, 2023, the anchor allocation bidding began and ended on the same day. Thirteen,34,000 shares in total were distributed among five anchor investors. At the top of the IPO price range of ₹75 per share (which comprises a face value of ₹10 per share and a premium of ₹65 per share), the anchor allocation was completed.

A total of ₹10.01 crore was allocated to the anchor. Neomile Growth Fund Series (49.76%), Rajasthan Global Securities Private Ltd (10.07%), LRSD Securities Private Ltd (10.07%), Saint Capital Fund (20.02%), and LC Radiance Fund VCC (10.07%) were among the recipients of the anchor allocation. The entire 00% of the anchor allocation was made up of these 5 anchor investors. A 30-day lock-in will apply to 50% of the anchor shares (up to February 16, 2024) and a 90-day lock-in will apply to the remaining shares (up to May 20, 2024) of the anchor shares that were distributed to investors on December 28, 2023. The anchor portion is not covered by the 5.01% market maker inventory allocation.

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How subscriptions grew in anticipation of Kaushalya Logistics IPO

The HNI/NII category led the oversubscription of the IPO, which was followed in that order by the Retail category and the QIB category. The daily evolution of Kaushalya Logistics Ltd.’s subscription status is depicted in the table below. There were four working days that the IPO was open.

Date	QIB	HNI / NII	Retail	Overall
Day 1 (Dec 29, 2023)	2.01	9.26	15.40	10.12
Day 2 (Jan 01, 2024)	2.74	44.56	71.69	45.46
Day 3 (Jan 02, 2024)	4.55	209.79	195.71	141.82
Day 4 (Jan 03, 2024)	92.62	847.88	375.44	390.88

Here are the main conclusions to be drawn from Kaushalya Logistics IPO daily subscription numbers.

In the Kaushalya Logistics IPO, the HNI/NII segment received the highest subscription (847.88 times), and on the first day of the IPO, it received 9.26 times as many subscriptions.
In terms of subscriptions, the Retail portion trailed behind the HNI / NII portion with 375.44 times overall, and at the end of the first day, it had 15.40 times subscribed.
By the end of the first day, the QIB portion had been subscribed 2.01 times, placing it third in the subscription hierarchy with 92.62 times overall.
Even the total subscription was filled on the first day of the IPO, despite the QIB, retail, and HNI/NII portions being fully subscribed on that day. After the first day of the IPO itself, the entire offering, which had seen 390.88 times as many subscriptions, had also been fully subscribed at 10.12 times.
On the final day of the IPO, the retail and HNI/NII segments saw the greatest traction. On the final day of the IPO, the total subscription ratio for the HNI/NII segment increased from 209.79X to 847.88X. On the final day of the IPO, the total subscription ratio in the retail segment increased from 195.71X to 375.44X.
The QIBs and the IPO as a whole both experienced the last-day traction story. On the final day of the IPO, the total subscription ratio for the QIB portion increased from 4.55X to 92.62X. Lastly, on the final day of the IPO, the overall IPO subscription ratio also changed, going from 141.82X to 390.88X.
Overall, Kaushalya Logistics Ltd.’s IPO became one of the few SME IPOs to have received more than 300 subscriptions in the past year, which is encouraging for the future.

What comes next after the IPO closes

Following the end of the IPO’s subscription period on January 3, 2024, the focus will be on completing the allocation basis and then listing the IPO. On January 4, 2024, the allocation basis will be finalized, and on January 5, 2024, the refund process will begin. Furthermore, the stock is scheduled to be listed on the NSE SME segment on January 8, 2024, and the demat credits are anticipated to occur on January 5, 2024. Unlike the mainboard, this is the section where small and medium-sized business (SMEs) IPOs are nurtured. By the end of January 5, 2024, the demat credits to the Demat account to the extent of allotment will take place.

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