Five Star Business Finance Ltd IPO Message Board (Page 2)

Did you apply at lower band price?

Yes and funds were unblocked yesterday.

I suppose, no news means IPO cancelled?

This is not likely to happen.

Its allowed. They can reduce the size of the issue and it will sail through

Generaly QIB bidding will come at the last moment and I have no doubt about the issue finally getting subscribed

Looks like this will be fully subscribed by QIB at the last moment. This may turn out to be best issue for retails who apply....100% allotment and handsome premium on listing as there will be no sellers.

.90% subscription doesn't apply to OFS , this issue is completely OFS.

If there is any change in this rule recently , I am not updated. To the best of my knowledge , rule for OFS stands as I referred.

@KalHoNaHo
😂😂Waah sir , salute 🫡🫡
Very very very good logic

@member,
Five Star Business Finance IPO succeeds despite being un-subscribed (received 0.70% subscription). Being 100% OFS, the company adjusted the issue size with the subscription received.

You could read more detail in above IPO Notice section.

I have also applied at lower band of Rs 450

yes. congratulations

Congratulations for you lost in advance 👍

@JAI JAI

I am not bothered about loss or profit. I applied to clear my doubt about lower price band allotment.

I guess only those who applied at upper band will the allotment.

I think all those who have applied at upper price band of Rs 474 will get full allotment. As the issue is undescribed the company reduced the size of OFS accordingly.

@Marwadi Ram ram sa 🙏
Now you will not get allotment at lower price band caz company reduce its odd size
Use that money in remaining ipo

Not necessary. OFS sellers can decide any price band as long as they fulfill other condition of listing

@arunARUN, If the OFS shareholders decide to allot shares at the lower band of Rs 450, then all applicants will have to be allotted at Rs. 450. Thus they will be collecting substantially lower OFS proceeds than originally planned. A low possibility.

Then what is the point of setting a lower band if allocation is at wish of promotor? I believe they have to allocate if someone has bidded even at lower band

@Marwadi Ipo, arunArun, jajo and all,
The process of IPO when approved by the competent authorities, enters the market for subscription with a price band and dates. When an IPO is successful in subscription, the price is fixed at higher price band. When it is not so successful, the Board of Directors with consultation of Lead Managers decide the final price. The Company in general is not generous towards the investors and want the maximum. It is at the discretion of the Board to decide the final price.
If you all remember the IPO of TM Bank, the issue was successful and subscribed 2.86x in total. QIB 1.62x, NII 2.94x and Retail 6.48x. The price band was 500-525. Even after the successful subscription, the shares were issued at 510. Why?
Discretion of Board of Directors. The only OFS Share holders alone can't decide the price.
For the retailers who really want to get an allotment should apply at cut off price only. Rest one can understand. The price band is given for the convenience to decide the price as per demand of the subscribers, I think. I may be corrected if wrong any where.

Then question is what is the use of band if promotor are not willing to allot at lower price!! Straight away provide one fix price either apply not apply.

@Ipo Gyaan
I have given one example of TMB where it is not given at higher price. In past the shares have been given at lower price also. If you can search you will find. It's difficult for me to remember such an example. Generally they will give it at higher price only, if a good successful subscription. The gap between price band is more. Earlier it was not that much. Management between Company and QIBs, I think. " DULHA DULAN RAAZI TO KYA KAREGA PANDIT".

@Ipo Gyaan.
Sorry to answer your query properly.
Why price band?
When there is a Book Built issue, price band will be there. Company give investors the chance to apply at any price band price. Retailers have an option of Cut Off price, means the price at which the company decides. Suppose the demand of the issue is at the lowest price from all investors the company will have no choice other than the lowest one. The demand of the issue is at different prices than they will have to decide a price where they can allot the full shares. Company can manage with QIBs, I think and not sure. Retailers who applied at Cut of price is likely to get allotment in this case. Hope you will now understand the concept of price band. When there is a demand on higher price why they give us on lower price.
Have a nice tomorrow.

Expert please suggest. As overall subscription is below 90% of IPO size. So this IPO going to cancel ?