Ok lets Do some math Hni and reatil contribute 43% of this ipo Ipo size (69 crore) Which means total alloted 30 crore for hni and retail catogery. Now lets assume both catogery subscription goes to 600 times Total money invested-600*30=18000 crore rs invested
Using our 18000 crore for 6 days. 6 days 12% interest of 18000 crore will be 36 crore.
Gmp of this sme is 250% So gain will 75crore for hni snd retail. People are screaming about 250% gmp which will half gone in interest we are paying
164.1. rsk| Link| Bookmark|
September 5, 2023 10:31:32 AM
IPO Mentor (600+ Posts, 300+ Likes)
interest is notional here. Funding is very complex and only few super ultra HNI individuals will afford.
164.2. Basuvr| Link| Bookmark|
September 5, 2023 10:42:07 AM
IPO Guru (1800+ Posts, 1000+ Likes)
@Saudagar How many of Retail and HNI investor apply IPO with bank borrowed funds
My assumption is Retail <10% HNI ~20%
Now do your Maths
164.3. ValueSeeker| Link| Bookmark|
September 5, 2023 10:55:51 AM
IPO Mentor (1100+ Posts, 400+ Likes)
That is always there in all issues.
Moreover, you get interest (let's say avg 4%) too, however smaller than funding rate, until debited. When we "do math", we ought to factor in that too.
Money is only blocked from investors account. It is not deducted. It is deducted only if it is allotted. They cannot use blocked amount, they can only use deducted amount.
Please suggest how to apply Basilic SME IPO through Groww ? I can not see this issue in Goww. Is it allowed to trade SME in Groww if allotted ? Thanks in advance
@Heisenberg For SMEs, we have to search using particular SME name Search for BASILIC in groww app, you will find. It won't be visible in IPO section add of now
i think groww allows sme ipos,my frnd applied for cps shapers and money also blocked but not alloted,search with the name of the ipo in the search bar.most of the times groww doesnt show the ipo names properly,it may be some kind of error.
I have a qs. Though I apply in regular ipos, I have never invested in sme ipo. Is there a sHNi and bHNi category here in sme ipo also. Or is it simple lottery and one lot is allotted depending on oversubscription. ( which was the case in older regular ipo's). Many tks in advance
There is no such things as Shni and Bhni in SME ipo. Applying 2 or more lots comes in hni category. Allotment in retail is via lottery and allotment in Hni is done in both ways via lottery and proportionate basis. For example if ipo is oversubscribed 100 times thans the applicant who have applied 100 lots will get confirmed 1 lot. If 2 applicant have applied for 50 lots than 1 applicant will get 1 lots via lottery between 2 of them.
I have access to funds of 30 lots (10 lots x 3 accounts), but does it make sense to apply for Basilic with cumulative probability of <5% chance of allotment OR use these funds to apply in any of the other SME IPOs - Saroja / Pramara / Kahan with less profit, but assured allotment?
156.1. BLUE WHALE| Link| Bookmark|
September 5, 2023 12:31:04 AM
Top Contributor (400+ Posts, 100+ Likes)
PRAMARA looks best for allotment/return purpose.
155. BLUE WHALE| Link| Bookmark|
September 5, 2023 12:30:09 AM
Top Contributor (400+ Posts, 100+ Likes)
It will not subscribe more than 400 times in HNI category. Premium will fall to 200.......too much overheated. Better to sell n apply I guess
154. SOAM| Link| Bookmark|
September 5, 2023 12:11:50 AM
Top Contributor (700+ Posts, 100+ Likes)
@Sound Investing, ASBA is always better, but the IPO window closes a bit early (timings depend on the bank involved from 2 PM to 3:30 PM).
UPI is good but sometimes there are some glitches and you cannot use UPI for investing more than 5 lakhs. One advantage of UPI is you can invest upto 5 PM on the last day of IPO.