Summary of this article
KSH International IPO remained undersubscribed by the final day of bidding
The IPO received only 83% subscription, falling short of the minimum 90% subscription requirement
The company is now likely to either extend the issue period, withdraw the IPO altogether, or rely on underwriting commitments, if any
KSH International IPO Subscription Status: The initial public offering (IPO) of magnet winding wire and conductor-maker KSH International remained undersubscribed by the final day of bidding. The Rs 710-crore IPO was overall subscribed by 83 per cent, falling short of the minimum 90 per cent subscription requirement.
The qualified institutional buyers (QIB) segment saw bids for about 4.14 million equity shares against the 3.89 million shares reserved for the category. The non-institutional investors (NII) portion was subscribed to just 42 per cent, receiving bids for around 1.21 million shares against 2.91 million shares on offer. Retail investors’ category was subscribed 86 per cent, attracting bids for 5.88 million shares against the 6.80 million shares reserved.
KSH International manufactures and exports magnet winding wires and conductors and caters to sectors such as power, renewables, railways, automotive, and industrials.
What Happens If An IPO Remains Undersubscribed? KSH International’s Case Explained
As per the market regulator Securities and Exchange Board of India (Sebi), the Issue of Capital and Disclosure Requirements (ICDR) regulations, an IPO is required to achieve a minimum subscription of 90 per cent of the issue size for the offer to be successful. In the absence of this, the issue cannot proceed in its current form.
The outcome now depends on the next course of action. The company is now likely to either extend the issue period to attract additional bids, withdraw the IPO altogether, or rely on underwriting commitments, if any, to bridge the shortfall and meet the minimum subscription requirement. So far, there has been no official communication from the company on the status of the issue. As of the time of publishing this report, Outlook Money had not received a response to its queries sent to the company and the book-running lead managers (BRLMs) of the IPO.
Until there is clarity from the company or the BRLMs, bidders will have to wait to know whether the IPO will go through or whether their application amount will be refunded, as mandated in the event of a failed issue.
What’s Next For Investors
According to the company’s red herring prospectus (RHP), in case the IPO gets cancelled, the company is required to issue a public notice within two days of the issue closing, stating the reasons for not proceeding with the offer. The company will also be required to inform the stock exchanges promptly and refund the application amount to bidders within the timelines prescribed under Sebi regulations.
The offer is also subject to final listing and trading approvals from the stock exchanges. If the company does not complete allotment within the prescribed timeframe, it is then required to refund the entire subscription amount to the bidders and pay interest for any delays. If the company decides to relaunch the IPO in the future, it is required to file a fresh draft RHP with Sebi.
KSH International IPO Allotment Status: How To Check Online
If the company takes steps to ensure the issue meets regulatory requirements, allotment could take place as per the original timeline. This means shares will likely be allotted to successful bidders today, December 19.
Bidders can check their KSH International IPO allotment status on the official websites of NSE, BSE and the registrar, which is MUFG Intime India in this case.
Here’s the step-by-step guide for checking KSH International IPO allotment status:
How To Check KSH International IPO Allotment On NSE
Go to NSE's official website.
Navigate to the “Invest” tab and click on the “Resources & Tools” section.
Navigate to “Check Trades/Bids” and click on “Verify IPO Bids”.
From the form that appears, click on “Equity & SME IPO Bid Details”.
Under the “Select Symbol” option, select “KSH International”.
Enter either your Permanent Account Number (PAN) or application number.
Click on “Submit” to view the final allotment status on your screen.
How To Check KSH International IPO Allotment Status On BSE
Go to the official website of BSE.
Click on the “Investors” section.
Navigate to the “Investor Services” tab and click on “Status of the Issue Application”.
On the next page, click on “Check Status”, or on the hyperlinked “Application Status Check” text at the lower end of the page.
In the form that appears, select issue type as “Equity”.
Under the “Issue Name”, select “KSH International”.
Enter either your application number or PAN.
Complete the captcha by clicking on “I'm not a robot”.
Click on “Search” to view the final allotment status on your screen.
How To Check KSH International IPO Allotment Status Online On MUFG Intime
Go to the official website of MUFG Intime: (https://in.mpms.mufg.com/Initial_Offer/public-issues.html)
On the home page, navigate to the “Investor Services” tab and click on “Public Issues”.
Select “KSH International IPO” from the drop-down menu.
Enter either your PAN, application number, depository participant ID / client ID, or bank account number / IFSC code.
Click on “Submit” to view the final allotment status on your screen.
