Analysts said the IPO was reasonably priced at 1.3 times trailing 12-month price to book value (post IPO basis) compared with 1.8 times valuation for Ujjivan SFB. But the IPO failed to draw high subscription levels as investors feared further stake cuts by promoters in the future to meet the RBI regulatory requirements. Equitas Holdings needs to pare stake in the bank to 40 per cent by September 2021, when it completes five years in operations.
Other factors that weighed on the subscription levels was the fact that the stock might get listed around November 2, a day before the US elections, when the market is expected to see a lot of volatility. Peer Ujjivan SFB, which got listed in December 2019 at a huge premium, was trading below issue price now, which was also a turn off.
The basis of allotment for the IPO would now be finalised on Tuesday while the refund process would be initiated on Wednesday. The credit of shares to demat account will be done on Thursday and a stock listing is likely by Saturday.
According to the dealers in the grey market, the issue had been trading at nil grey market premium. It infact was trading at a discount of Rs 2 at some places.
Those who had bid for the issue can check the subscription status on the online portal of KFintech Private Limited, the registrar to the IPO. The registrar to an issue is a Sebi-registered entity, qualified to act as such, and which electronically processes all applications and carries out the allotment process as per the prospectus.
On KFintech Private Limited’s
web portal, one needs to select the IPO whose data will be populated only when the basis of allotment is declared. One also needs PAN ID or application ID or client ID and DPID (depository participant identification) to arrive at information.
The registrar is responsible for complying with the time deadlines for updating the electronic credit of shares to successful applicants, dispatch and uploading of refunds and attending to all investor-related queries after the issue is completed.