42 lakh applications, up to 3% allotment odds: GNG IPO turns into lottery, SHNIs stunned

GNG Electronics IPO, which saw a solid response from investors during the bidding process, has now left investors wondering what are the odds of getting the allotment of shares after a stellar bidding for the issue. Despite a miniscule, individual or retail bidders stand the best chance of allotment for this issue.

The IPO of Anthem Bioscience fetched nearly 42.14 lakh applications. Net of its anchor book, the IPO of GNG Electronics fetched bids worth Rs 49,744.28 crore for its Rs 336.27 crore offering as the issue was overall booked a stellar 147.93 times. Allotment is likely to be out by Tuesday, while shares of the company shall be listed on both BSE and NSE on Wednesday, July 30.

On an individual basis, the quota for qualified institutional bidders (QIBs) was booked 266.21 times, fetching bids worth Rs 253.93 lakh crore. The allocation for non-institutional investors (NIIs) was booked 227.67 times, attracting bids for Rs 16,452.80 crore for their allocation. Retail portion was booked 46.84 times, getting bids for Rs 7,898.46 crore for their allocation.
 

Here is the tentative odds allotment matrix in Anthem Biosciences IPO for the investors:

Big HNI category: one investor out of 53 investors will get 882 shares (Probability: 1.88 per cent)

Small HNI category: 1 investor out of 173 investors will get 882 shares (Probability: 0.58 per cent)

Retail category: 1 investor out of 4 investors will get 63 shares. (Probability: 2.78 per cent)
 

The IPO of GNG Electronics was open for bidding between July 23 and July 25. The Mumbai-based company had offered its shares in the fixed price band of Rs 225-237 per share with a lot size of 63 shares. The company raised Rs 460.44 crore via its primary offering, which included a fresh share sale of Rs 400 and an offer-for-sale (OFS) of up to 25.5 lakh equity shares.

Grey market premium (GMP) of GNG Electronics has remained firm following a solid response from investors, signaling a strong listing at the bourses. Last heard, the company was commanding a premium of Rs 100-105 in the unofficial market, indicating a listing pop of 42-44 per cent for the investors.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to it. Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial are the book-running lead managers of the Anthem Biosciences IPO, while Bigshare Services is the registrar for the issue.