Hi I have SBI shares in my demat. If I want to invest 2 lakhs for this ipo, please suggest me who much to invest in shareholder category and retail category.
Also whether icicidirect allows to apply thru these both categories?
But retail allotment will go to lottery if subscription is more than 100℅ right. So getting confirmed shares is possible only thru shareholder category? Is that correct?
1203.3. Paymzia| Link| Bookmark|
February 29, 2020 1:27:48 PM
IPO Guru (2500+ Posts, 4500+ Likes)
Even in share shoulder category more than 1x it is going to be proposnate . In proposals basis shares may come but not in lot size way.
Ok thanks. In shareholder category we will get at least some confirmed shares? For example if shareholder subscription is 10x and if I apply 8 lots ie 120 shares, will I get 12 shares at least?
1203.5. Ou Ai| Link| Bookmark|
February 29, 2020 2:24:54 PM
Top Contributor (300+ Posts, 300+ Likes)
Several years ago SEBI amended rule to allot minimum on lot plus any extra shares in proportionate allotment. Please note, this is not application based minimum allotment as in Retail wherein regardless of lots applied all applications are pooled and treated as single lot once number of applications exceed number of available lots.
In your example. over subscribed 10 times in shareholder category with proportioned allotment. If you applied 8 lots of 120 assumes one lot of 15 shares. As 120/10= 12 shares is less than minimum 15/lot , to give 15 shares ,say one lot, 8 out of 10 applicants who applied in 8 lots category will be allotted one lot of 15 shares by lottery'. That is effectively 4 out of 5 applicants. Similarly, all those who applied for 10 lots will get on lot. And for those applied say for 12 lots of 15 shares will get 12/10=1.2, that is minimum one lot 15 shares plus 3 shares to 18 shares.
When proportionate, all applicants in each lot size pooled together and allotted in proportion subject to minimum one lot by lottery as above wherever proportion is less than one. You will see that in Ujjavin Finance shareholder category oversubscribed by 3+ times allotted by lottery to those applied for 1 and 2 lots. All those applied 3 and above lots confirmed allotment of one lot and above. This will be the method even if number of applications are less than number of lots.
Trust this is explained well for all to understand.
Dear friends, this IPO premium will get less when it will list and chances of allotment is less. Infect so many good fundamentals company's shares are 52 week low and will get in cheaper price and we will make hhandsome money in short period. So instead of applying in this IPO better to purchase from secondary market good qualities stock. Will earn good money. That's what I am thinking. What you say. Give me your opinion please. Thanks.
Dear Admin. Sir, What will be the procedure of SBICARD allotment in SBI Shareholders quota? If issue oversubscribed in shareholder's category, the allotment will be pro-rata and will be confirmed allotment or will be by lottery system like Retail Category? Kindly clarify.
1198.1. Paymzia| Link| Bookmark|
February 29, 2020 3:05:36 PM
IPO Guru (2500+ Posts, 4500+ Likes)
1195. Ou Ai| Link| Bookmark|
February 29, 2020 2:35:56 PM
Top Contributor (300+ Posts, 300+ Likes)
Since shareholders above ad below 2 lakhs applications are pooled together, in the likelihood off over subscription say 25 times those applying 13 lots will have an approximate chance of 1 out of 2 to get one lot. Demarcation of below 2 lakhs application amount is only to enable participation in Retail category too, but not for allotment preference.
The Hindu Business Line recommends "retail investors can subscribe to the issue for the long term". SBI Cards IPO: Should you subscribe?: https://www.thehindubusinessline.com/portfolio/stock-fundamental-analysis-india/sbi-cards-ipo-should-you-subscribe/article30942481.ece
Hello experts please help me i have saving account in andhra bank so can I apply in this ipo in retail and shareholders both category on same pan number and demet account if anybody know about this then share your view thanks