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Equitas Shares To List On 21st April

Equitas Holdings IPO which was the first IPO of the new financial year closed with a bang yesterday, garnering a subscription of 17 times the issue size. The stock which was attractively priced compared to it’s listed peers like SKS Microfinance and Arman Financial Services saw high demand from HNI’s and Domestic Institutional Investors. The attractive valuation was primarily responsible for acute investor interest in the IPO.

The shares of the company are expected to list on 21st April 2016, the company has informed the stock exchanges. You can expect the allotment to be completed by next week while the refunds would be electronically credited into your account by 20th April 2016. The allotment ratio for retail investors could be the ratio of 8:10 , which means for every ten share you have applied you will be allotted 8 shares.

We have been reporting extensively on the company since 2008 and you can read our previous publications on Equitas Holdings below.

equitas-ipoGrey Market Premium rises to 20%

Traders who buy shares on the grey market have indicated that the share is trading at a value of Rs 130-132 in the grey market. Some analysts have also indicated that Equitas Holdings might announce blockbuster Annual results in the first week of May which will further increase it’s price to over Rs 150 by May end. This means retail investors who have burnt their fingers in Coffee Day Holdings, Teamlease and Quick Heal IPO’s can at last expect some profits.

What is the Grey Market ?

In India, there are several offline over the counter markets where brokers and traders take orders for preferred clients on select issues even before the shares are listed. This facility provides two benefits to investors, they can sell their stock without having to wait for the listing day. They can also purchase the stock if they feel they will not be allotted the quantity that they have subscribed for.

Equitas Future Plans for Finance Bank License

The first step for the NBFC would be to merge it’s different subsidiaries which it setup for the microfinance, housing loans and vehicle financing. After the 2010 Andhra Pradesh Microfinance Crisis, the company had created three subsidiaries to insulate it’s verticals from risks emanating from different loan products . Equitas hopes to start operations as Equitas Bank by April 2017.

30 Comments

30 Comments

  1. K D Patel

    April 14, 2016 at 10:35 am

    Whether allotment of share finalised?
    Whether all applicant in Retail quota will get confirmed allotment?
    8:10 means what? i) whether out of 10 applicants 8 will get full allotment of 135 shares? OR. ii) all applicants will get confirm allotment of lesser number of shares i.e. Less then 135 shares as applied?

  2. Abhay N

    Abhay N

    April 14, 2016 at 10:44 am

    Hello Mr Patel

    The ratio is if you applied for 10 shares you will be allotted 8 shares. This is not confirmed but is information I received from a trader friend. If you applied for minimum lot of 135 shares you will get full allotment. Only those who have applied for the full limit of Rs 2 lakh for retail investors will get shares less than what they have applied for. This is because you might be aware that retail portion is subscribed 1.3 times.

  3. Salim

    April 14, 2016 at 1:00 pm

    When Share will be credited in Demat Account of individuals.

  4. Subharanjan

    April 14, 2016 at 5:28 pm

    Already allotted 135 in icicidirect.

  5. Abhay N

    Abhay N

    April 14, 2016 at 5:38 pm

    Are you sure, because it is not allotted in my icicidirect account. I just checked and it showed zero holdings.

  6. Vishal Miyani

    April 15, 2016 at 10:35 am

    i got msg that ur account deducted 14850 rs for equitas . that means i got share !!!! frm icici direct its very confusing

  7. Abhay N

    Abhay N

    April 15, 2016 at 10:42 am

    Hello Vishal

    Everybody in the retail segment has got 135 shares allotted. The amount has been debit but the shares have not yet been credited into your demat account.As today is holiday you can expect shares to be credited on Monday or thereafter. To know your allotment status visit the IPO order book and you will know how much you have been allotted.

    Regards

    Abhay

  8. Ramesh Chander Khurana

    April 15, 2016 at 4:21 pm

    is it not prorata allotment for those who applied for more than 135 shares under retail category

  9. Ramesh Chander Khurana

    April 15, 2016 at 4:22 pm

    I applied for 1080 shares under retail segment, but allotment is for 135 shares only. is it correct?

  10. Abhay N

    Abhay N

    April 15, 2016 at 4:30 pm

    This IPO is rigged by brokers and lead managers. That is why a lot of brokers asked their clients to subscribe for only minimum 135 shares because they knew beforehand that the IPO would be oversubscribed and most them would get the minimum 135 shares.

    From what I have read online most retail investors have got minimum allotment of 135 shares. That is the maximum you can get, I think…

  11. NARINDER

    April 15, 2016 at 5:03 pm

    I have hdfc bank demat & trading a/c but not received any information

  12. Srinivasan Kumar

    April 15, 2016 at 10:31 pm

    Abhay, 135 shares for all retail applicants is done only when the issue has been o/s by multiple times. Here one can expect at least 55% if applied for full.

  13. Milan

    April 16, 2016 at 3:50 pm

    I had applied for 13 lots (1755 shares), I’ve been allotted only 135 shares. The retail portion was oversubscribed 1.4 times only. I should have got 1400 shares if I go by the numbers. Are the Lead Managers taking the retail customers for a ride?

  14. Abhay N

    Abhay N

    April 16, 2016 at 5:28 pm

    Yes, you could say so. The brokers already knew something like this would happen so they asked retail investors to apply for minimum lot. I think they have allotted all retail investors the minimum lot and then sold the remaining to HNI because of high demand ? Could SEBI allow this ? I don’t know.

  15. Abhay N

    Abhay N

    April 16, 2016 at 5:38 pm

    You can find out more about the new allotment rules being followed in IPO’s at the link below.

    SEBI Ipo Allotment Rules

  16. Milan

    April 16, 2016 at 6:03 pm

    Thanks Abhay. The link was helpful. Lead Managers are exploiting the loophole in the IPO allotment rules. Its better to apply in multiple names via smaller lots.

  17. Chaitanya

    April 16, 2016 at 10:28 pm

    I subscribed for 1350 shares and got allotted only 135 shares. The retail category is only oversubscribed by 1.4 times I heard. So what happened. Is there a grievance forum where we can raise this seriously. This is blatant corruption at the securities allotment level!!

  18. Abhay N

    Abhay N

    April 16, 2016 at 10:39 pm

    You can approach SEBI and launch a complaint at http://scores.gov.in/. But don’t expect any quick results or changes in IPO allotment rules.

    You might even have to file a court case and wait till it is heard all the way to the Supreme Court.

    All the best.

  19. Sanjay Verma

    April 17, 2016 at 6:09 pm

    Very bad. I applied for 1350 shares but have been alloted only 135 shares. If this co do like this in the starting I think one should avoid investment in such rigged stocks. Sebi should take a suo moto action in this regard. Disgusting.

  20. Akhil

    April 18, 2016 at 12:52 pm

    Thanks Abhay for the info.
    I’m also very disappointed on the results of allotment. Never expected only 135 shares. Wish this issue gets highlighted and rectified.

  21. Milan

    April 18, 2016 at 7:18 pm

    I had filed a complaint to SEBI as soon as I got to know of my allotment. I think more investors need to do the same, then only we can expect some remedial action. Unfortunately, in our country these things move at a snail’s pace. But if we stay quiet, these things will keep happening to the retail investors.

  22. mahesh ladha

    April 19, 2016 at 3:40 pm

    I was allotted 135+135 =270 share. At what rate shall I sell on the 21st ?

  23. Abhay N

    Abhay N

    April 19, 2016 at 4:13 pm

    Don’t sell it on listing day. Wait for 30 days until 20th of next month , when the results are expected. Sell after taking a look at the Annual Results.

  24. rajendra kadam

    April 20, 2016 at 9:30 am

    My son has applied for shares and form serial number is 30676897 and my wife form serial number is 30646898. Both of them allotted shares but both amount debited from my wife account. Even those my son is having bank account. Is this bank mistake or mistake from your side?. Please explain

  25. Abhay N

    Abhay N

    April 20, 2016 at 10:05 am

    Please contact the registrar Karvy on their Toll Free Number 1800 425 8282. They will answer all your queries.

  26. Raman

    April 20, 2016 at 10:12 am

    I have applied 405 shared through hdfcsec txn number 704106597 but seems like no share alloted to me.
    is it happen or should i need to check with someone.Please advise me.

  27. Abhay N

    Abhay N

    April 20, 2016 at 10:19 am

    You can check your ipo allotment status by entering your application no at the link given below.http://kosmic.karvy.com:81/ipotrack/

    If you have any more doubts contact the Karvy Toll Free number given a few comments above.

  28. Subramaniam.P

    April 21, 2016 at 2:14 pm

    I applied through ICICI direct but in .http://kosmic.karvy.com:81/ipotrack/ it shows no bid details. I applied for 945 shares at cut off price of 110. and ICIC didn’t give any intimation on the status or allocation of shares nor by sms neither by email.

  29. Abhay N

    Abhay N

    April 21, 2016 at 2:16 pm

    You can contact the ICICI Direct customer care numbers given below, they will provide the details on the status of your application.

    http://content.icicidirect.com/cuscarenos.htm

  30. Pal Ravi Rajendrsinh

    December 3, 2016 at 5:25 pm

    Sir , I’m looking forward to establish a charitable trust at my home town in ahmedabad. Plz mail me all the concerns regarding the registration, memberships and all the procedures

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