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Retail Investors Get 135 Equitas Shares Allotted

Retail investors who applied for the Equitas IPO have started receiving the refund amount blocked under ASBA. Investors with savings bank accounts in Yes Bank, State Bank of India, Union Bank and ICICI Bank have reported that the ‘hold‘ placed on their application amount has been released and they have received SMS alerts confirming the same. Investors can now expect the shares to be credited to their Demat account by the 20th April as the shares will begin trading on the NSE and BSE on the 21st April.

HDFC Bank, Bank of Baroda and Kotak Bank Account Holders have still not been informed about the allotment, they must be patient and wait until Monday to know the updated status of their applications. The basis of allotment is now clear, all applicants have been allotted a minimum of 135 shares each. Some users have posted fake claims on forums claiming they have been allotted more than 1000 shares of Equitas, these claims are bogus and made by vested interests to discredit the IPO book managers.

Check Your Allotment Status

Investors who are anxious to know about the status of their applications can check it online at the link below. (Please Note : The details of allotment are yet to be updated by Karvy.It might take 2-3 days to start functioning.)

http://kosmic.karvy.com/eipo/ipoapp.aspx

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Investors who had applied through ICICI Direct first reported receiving SMS alerts on 14th April 2016 intimating them about the amount deducted for the shares allotted. The amount debited was Rs 14,850 for 135 shares of Equitas Holdings Ltd at the price of Rs 110 each. You can also login into your ICICI Direct account and click on Order Book in the IPO sub menu, where it will show you the amount of shares allotted for your application.

ipo orders

Equitas could list between Rs 135- 150

The shares of Equitas are currently trading at a grey market premium (GMP) of Rs 25 per share. Some analysts believe this means Equitas could list around Rs 135 and then could climb up to end the day closer to Rs 150. The sentiment in the stock market is also quite bullish with the Monsoon expected to be above normal , the NIFTY has rallied more than 200 points this week.

International stock markets have also performed well over the past few days with the Nikkei is leading the pack by rallying more than 5% over the last two trading sessions. The short term outlook for the stock markets is very positive and hence you can expect Equitas to list with a bang.

Long Term Investment

Investors should buy more stock on listing day because it’s valuation is much lower than it’s listed peers like SKS Microfinance. Many retail investors who have got minimum allotment of 135 shares will sell it on listing day and control of the stock would move into the hands of domestic institutional investors and mutual funds. You can purchase the stock with a one year price target of Rs 300 by April 2017.

9 Comments

9 Comments

  1. Sam

    April 19, 2016 at 4:04 pm

    Something fishy happened in the allotment and karvey has a reputation for these kind of scams. How do you explain the allotment of 1 Lot for each application when the issue was oversubscribed by mere 1.4 times? That means for 100 shares on offer, 140 bids were placed (and not all were at cutoff price.)
    Lets assume that even if all were at cutoff price, still applicant should have been allotted 71% of applied lots where as we got only 1 lot our of 10, 12, 15 etc. I hope some investigation is carried out and these guys are brought to light.

  2. Sudhir Iyer

    April 20, 2016 at 7:49 am

    Question. I had bid at Rs. 109 for 135 shares. This is my first time at an IPO. My hold was reversed but no deduction made. Does this mean I get no shares? What price did the share get finalised at?

  3. Abhay N

    Abhay N

    April 20, 2016 at 10:03 am

    The shares have been allotted at Rs 110. When you are applying for an IPO it is always better to apply at the cut off price. You can know more about cut off price at the following link. http://www.hdfcsec.com/TradingDemo/ipo/

  4. Sudhir Iyer

    April 20, 2016 at 10:16 am

    Thanks Abhay. Will remember this for the next time.

  5. Ganesh

    April 20, 2016 at 12:12 pm

    I Agree strongly with SAM. I had applied for 1400 shares and got allotted only 135 shares though retail is subscribed only1.4 times how come ? Looks like the internal work of Registrar. I request the concerned authorities like SEBI etc to look into this and investigate seriously.

  6. Saurabh

    April 21, 2016 at 8:31 am

    totally agree with you Ganesh. There is some manipulation done by them

  7. Prajwal

    April 22, 2016 at 4:29 pm

    Even I agree with SAM on allotment of Equitas HoldingShares to retail investors when retail segment ovesubscribed by less than 2 times. I have applied 8 lots at cut off price got one lot

  8. Vasu singla

    May 7, 2016 at 11:22 am

    I applied three applications of 1755 shares each in diffrent names but alloted only in two applications 135 each & in third application nil allotment great manipulation and fraud by registrar

  9. Satisha BM

    June 29, 2016 at 4:56 pm

    HI Abhay,

    When will the Mahanagar gas be listed ?

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