Campus Activewear Limited IPO Message Board (Page 38)

IDK whats exactly what will b the process of allocating securites in upper hni cap. But in my opinion allocating 14 -15 lots to a single person will make sense and create fair chances for all.. else giving 67 lots to single applicant will create big gap among investor.
And imagine somebody gets 67 lots of paytm at ones ?? 😲

■In my understanding check the following link and read from page 44 -Illustration explaining the procedure of allotment for non-institutional investors“
10 lakh plus HNI minimum application size is 68 lots

https://www.sebi.gov.in/legal/regulations/jan-2022/securities-and-exchange-board-of-india-issue-of-capital-and-disclosure-requirements-amendment-regulations-2022_55351.html

Haha allotment of 67 lots of paytm would have made the HNI investor started applying in retail category if these rules had applied then.

@Noorul
Talking about fair chances, why make big HNI block 10L and give them only 2L worth shares, because on the other hand for small HNI blocking only 2L and if lucky get 2L shares. Why not parity for all ? What I mean is why create 2 parts of HNI (I.e. big and small) ?
Imagine the greed of the investor if he would’ve applied for 67/68 lots in Paytm. Since an investor will get directly huge quantity allotment only serious people who can bear the risk will apply according to their risk appetite.

@Pratham
Finally you are the one who is in support of Big HNI getting 68 lots.

@ipostonks Fully agree with you

@ ipo stonk. Getting a lot in small hni cap going to b very very touch. I considered that category as a upper retail category rather than small hni.
In that category the subscription figures in demanding ipo will b huge and insane.

The very idea behind the bifurcation of erstwhile HNI category to Small and Big HNI was to control the crazy level of oversubscriptions in good IPOs and to give a level playing to so called Small self funded HNIs. In most of the good IPOs small HNIs ending up with 0 allotments and Big HNIs (not talking about the super rich applying in several crores) just manage to get 1 or 2 lots. Due to the new rules, at least few lucky small HNIs are assured of a minimum 2+ lakhs worth of allotment in good IPOs even after highly oversubscribed. Similarly in Big HNI category, if minimum allotment is of 2+ lakhs worth of shares, there will be more allottees and will get a fair chance for more applicants, rather than 10+ lakhs worth of shares as being debated by few members. This is my understanding.

@jajo @Noorul @ipo stinks @Pratham....
every new rule may have some logic or justification, but I find none in allotting a minimum of 14 lots to small HNIs. Even SEBI ideally would want to allot shares to maximum applicants possible. But by allotting a minimum of 14 lots to single applicant in place of allotting one lot to 14 applicants, they are depriving 13 small HNI applicants of 1 lot. Furthermore even that lucky applicant may not be comfortable to have 14 lots.
Secondly crazy HNI subscription could have been easily controller by blocking funding and financing or even by having some limit on application amount, maybe in sync with issue size or HNI portion.

One thing is sure that these rules will change the IPO business completely, for good or bad, one has to wait and see. SEBI should have handled this transition in a better way, just a notification with no clarity and no follow up has raised confusion level. I hope dust settles after first 1-2 IPOs and I hope even more that sebi does not surprise big HNI with 68 lot allotment.

On a lighter note , I think even SEBI is not sure of minimum allotment to big HNIs as all examples they have given are of small HNIs.

@Noorul
Its look like small HNI will be similar to
SME ipo subscription for retailers
In good IPO it is lottery kind alottment.

Allotment to HNIs. Could it be that all applicants are allotted one lot each and remaining in proportion to the size of application. That would make more sense. Becz allotting 14 lots to small HNI would make him nervous and everyone will rush to sell. Moreover the objective of wider ownership of shares will also not be met that way.

@jajo
If eventually in both HNI category we get allotment of 2L only then why differentiate in applying (I.e. small HNI will apply for 2L worth and Big HNI will apply for 10L worth). Announce the whole HNI category as similar as retail category where in minimum lot will be allotted and allotment will be via lucky draw.

@Avenue @Trueinfo
If an investor will not be comfortable or nervous with 14lots allotment he shouldn’t have applied for the same. I think this is a good rule to reduce speculation further more. Serious applicants will be applying. Why do you think in SME IPO minimum allotment is of more than 1L ? Because those are riskier companies and SEBI does not want small naive retailers burning their hands.
Wider ownership is already achieved by giving 35% quota.

Why would small HNI get nervous with 14 lots? It's HNI not retail.

@Mr. Singh... I think a good part of retailers will apply in small HNI category for 14 lots at least in first few IPOs with new rules. Not me and you, but some of those new retailers may not be comfortable with 14 lots.
I am talking about first few IPOs and after a while everybody will be expert on new rules and new experience...

HNI investors in both the quotas will get a minimum of 14 lots ( Rs 2 lakh approx ) if allotted.
While this system discourages small HNIs who don't want exposure beyond 50-100k per company, it also reduces the chance of getting atleast 2-3 lots which some HNIs were getting before. There won't be any peace of mind post application as you won't be certain of allotment and the number of lots.

What will happen if someone bids for 9 lakhs and if the issue is oversubscribed many times? Basically, if the HNI quota gets subscribed 50+X like it happens in most good IPOs, is there any difference between bidding 2 lakhs and 9 lakhs?

There is no confusion in allotment for 2~10 lakh and above 10 lakhs. In HNI both categories minimum lots are redefined. So, if respective categories are oversubscribed over 1 time,
Allotment in 2~10 lakhs is 1 lot of 14 by lottery. (Treatment is same for those applying 2 lakhs or 9 lakhs)
Allotment in above 10 lakhs is 1 lot of 68 by lottery. Regardless of application size.
If oversubscription is less than 1 time in above, then it will be proportionate after confirmed allotment of 1 lot of 14 in 2~10 and 1 lot of 68 in above 10.

This is similar to RII of allotment of 1 lot whether application is for 1 lot or 13 lots in case of oversubscription. Trust this helps.

@ou ai I think you got it all wrong.
minimum allotment is 14 lots in both irrespective of the application size if the issue is oversubscribed. Apart from the minimum 14 lots, you will get proportionate allotment based on your application size.

@MOG
You have not got it right. GO and read SEBI rule as well as RHP carefully applicable no onwards. Above 10 lakhs minimum lot is 68 means 10 lakhs worth shares. 2 to 10 lakhs, 2 lakhs worth shares.

if you can manage with 5 separate UPI ids, it is fool proof as Registrar sometimes (particularly LinkIn) rejects third party IPO application.

Its always better to maintain the UPI ids of investor as per their own account rather than 3rd party.
This is to ensure no trouble in future.

I think thay are also waiting for 4th May... :)

Dear Admin
Please provide subscription status for clarification

May the 4th be with you 😅

@Members,
Both BSE and NSE are not showing segregated data from Small NII and NII categories. We are not sure if this new rule is applicable in this IPO.

We are checking with exchanges.

That is the height of confusion and unclarity.
Now even Team Chittorgarh is not sure if new rules are applicable to campus IPO.

I hope our doubts will be cleared before close of this IPO.

@Amit Kumar Yadav
May the 4th be with you 🫡

@Avenue
Chaos all around!!

As per the LM, the new categories (Small NII and NII) are in place for this IPO but the bidding systems are not yet updated. We should get more details shortly.

The Basis of Allotment document will revale the true bifurcation.

@Team Chittorgarh... Thanks for clarifying this.

Now we know something at least that new rules will apply to this IPO. I don't expect BSE/NSE to update their bidding system any time soon, else they would have done it already.

For the time being let's play blind...

As per our discsssion with a lead manager:
-----------
1. Exchanges are permitted to follow the old subscription pattern by SEBI. The clearity of allotment with new rule will be known only in the Basis of Allotment document (A).

2. As per the new RBI circular "HNI cannot apply for more than Rs 1 Cr in any IPO with borrowed funds". This will have a significant impact.

3. New bifurcation guaranties some allotment to HNIs in both categories. Earlier many HNIs in lower categories were not getting any allotment.
-----------

This is just for your inforamtion.

I remember some members where sharing the details of application count . I think that may give some hints even though tough to predict the subscription figures in each category.

Can you share the link that will have details of application count also.

Thanks

@admin
“Exchanges are permitted” so they can apply the rules at their discretion. This is so wrong.
Can you ask exchanges or lead manager or even sebi regarding the rules, because we will be applying without knowing the rules.
After placing bets if the bookie changes rules it is not fair.

"Exchanges are permitted to follow the old subscription pattern by SEBI" ..
I think exchanges are allowed to display subscription as they have been doing in past irrespective of showing exact and separate subscription figures. Thereby saving exchanges from updating their system in advance...

"HNI cannot apply for more than Rs 1 Cr in any IPO with borrowed funds"...
Means Big HNI can apply with any self owned fund. If borrowed fund has come to HNI account how does SEBI know that applicant money was borrowed..

It is getting even more interesting and I have too much of free time today...

@avenue
Enjoying ipo too much 🤣🤑

Allotment of 14 Lots to one Applicant is Bothering many who wanted to Participate in small HNI category. Would have been better if 1 lot would be allotted to small HNI in Lottery system. In such a case 46998 Applicants would have been allotted 1 lot instead 14 lots to 3357 applicants. SEBI intended the same but somehow its not happening.

what is the expected subscription (no. of times) in retail and HNI-category 1 and HNI-Category 2?

@Admin,
"HNI cannot apply for more than Rs 1 Cr in any IPO with borrowed funds"

the above statement means, by using own fund is not a problem, right?

or its not allowed for any one more than Rs 1 Cr. in HNI as per new rules

Kindly confirm. Much appreciated.

Thanks

With your funds, you can apply as much as you want (max up to the size of the issue in the NII category).

@Admin,
Appreciated the swift response. 👏👏👏

@Avenue,
your statement is right ✔, (how SEBI will know if its borrowed fund or own 🤔. only bankers or income tax dept knows). Anyway lets see. (good thing is that I still can apply with my own fund 😉)

Thanks

Vanakkam Ravi,

Congratulations to you on attaining the rank of a Guru in this forum. You deserved it all the way. It is akin to doing a Ph.D here. Please continue to enlighten us.

I wonder which was your 1000th message.....like the 1000 Lights in Chennai !!
All the best to you....

@avenue SEBI don’t have any issue if you are applying for more than 1 crore with borrowed fund. It is the bank or nbfc who has to check this to comply with RBI circular. And they are easily check that, as per my knowledge the bank or nbfc mark a lien against the share application one filled with the borrowed fund. If one try to play smart and increase the application later on. Bank may ask him to settle the loan upfront without waiting for refund or may charge various charges and penal interest for non payment and breach of contract.

Open for any correction.

Oh Yes Congratulations Guru MRavi for 1000 posts.
Most of your 1000 messages have helped members and I am sure irrespective of tag you will continue doing great work,

Big Thanks...

@Eklavya,
Vanakkam. It has been a while, good to see your message.

@Eklavya, @Avenue,
I noticed while ago only (@Eklavya, I dont know which one is 1000🤔, btw your example is cool😎). I am humbled by your kind words since I did not much contributed to the forum to get this tag. Any way as @Avenue said, it doesn't matter, I will continue learn from you all and try to answer to the best of my knowledge as much as I could.

Thanks

MRavichandran Congratulations. It means you posted more than 1000 messages and helped a lot to the forum members. Thanks.

@ mravi sir. offcourse u can apply with your own money.. as much as you can. But the problem with this new rule is there is no certainty of comfirmation of allotment. All will go in lottery system ones the upper category is fully subscribed. 10lakh to 100 cr application hve same percentage of chances. No matter whether the money is own, borrowed or stolen.

Congrats for becoming a Guru. You truly deserve. 👨🏼‍🎓

@ Harsh Stock Expert If only one lot is to be allotted to small HNI, then what is the use of blocking two lac rupees instead of fifteen thousand only. Then sebi should increase the retail limit from rs. 2 lac to rs.10 lac and increase that shares quota more by 5%. and the HNI limit should start from rs. 10 lac. In my view the present rule will prevail even in the coming days.

I might be completely wrong but currently in grey market 4 types of rates are going on....

Application of 15,000
Application of 2,00,000
Application of 10,00,000
Premium per share

If application rate of 2L and 10L are different, I feel that person applying for 10L will probably get more lots otherwise everyone would simply bid for 2L.

@Anari Investor @ Noorul,
Thanks for those kind words.

@Noorul,
understood about the lottery system (maybe for the undersubscribed issues it could be useful), lets see how it goes for few IPO's. btw I liked your sense of humor 😂😂😂 (No matter whether the money is own, borrowed or ''stolen'')

Thanks

Congratulations MRavi sir for your new tag .

Congrats@ Mravi on your new status. You are really an asset to investors here.

All will be rejected

@Iponahil , why r u giving wrong information??

Kindly provide genuine Information???
Please help???

@Dipendu

What will I get of sharing wrong information?

My all applications in Ruchi soya were rejected only 3 application which I put through ASBA got allotment that also of 2 lac app all accepted total 3 application

Did u get allotment in third party UPI in Ruchi Soya??

@ony

You can take experience of third-party UPI and apply with third party UPI
Next things will be clear yourself

There is no such proper guidelines from sebi for supporting or not supporting third party ASBA/UPI applications.
Normally its mentioned that third party applications are "liable" to be rejected. it all depends on registrar , sometimes they accept third party applications (both ASBA/UPI) sometimes they reject. There is no strict rule for that.

So everyone should try to use own bank account first, if not possible to do that suppose like in cases of minor sometimes or relatives etc then only use third party applications, else whenever possible, always use own bank account ASBA/UPI for ipos.
And i think no need to discuss/ask much these things here or to banks or to registrars, since more we discuss, more they will restrict like it happened in BOB before, then in SBI now.

All applications will be rejected. Third party UPI is not allowed. Only third party asba was working that only with some registrar. But now third party asba is also not allowed. Use seperate UPI I'd and bank account for each application.

Though some people are saying that Net banking third party asba is working with some banks but for how long no one knows. Also if Bank reject your application you will loose your chance in getting allotment in this good IPO. So apply carefully. Baaki third party application kaam kar raha hai ya nahi ye check karna hai to kisi Paytm type ghatiya IPO me check kar lena.

puch rahe ho ya bata rahe ho?

Ankur Goel
It is working in sbi YONO lite
But not working in sbi NetBanking
I am also in dillema.

SBI YONO IE mobile banking , THEY WILL fix it and not allow third party till then apply
net banking third party ASBA STOPPED

Please clarify
Application reject to nahi hogi na, agar sbi yono lite se third party asba lgaya to ?