Yudiz IPO: Issue Subscribed 0.8X On Day 1, NII Portion Receives Lowest Number Of Bids

SUMMARY

Yudiz’s public issue received bids for 15.92 Lakh shares as against 19.57 Lakh shares on offer

While retail investors bid for over 80% of the shares on offer for the category, NII portion was subscribed just 37%

The IT service provider and consultant’s IPO will close on August 8. The stock will be listed on the NSE’s SME platform

Blockchain and IT development company Yudiz Solutions’ initial public offering (IPO) was subscribed 0.8X on Day 1 of the issue.

The issue received bids for 15.92 Lakh shares as against 19.57 Lakh shares on offer. Of this, retail individual investors (RIIs) bid for the highest number of shares.

RIIs bid for 7.3 Lakh shares, which was a little over 80% of the total of 9.08 Lakh shares on offer.

The portion reserved for qualified institutional buyers (QIBs) was subscribed 1.2X and received bids for 6.66 Lakh shares.

As per Yudiz’s exchange filing, not more than 5.2 Lakh shares are allocated for QIBs. This number excludes anchor investors’ portion of 7.6 Lakh shares.

On the other hand, non-institutional investors (NIIs) placed bids for 1.95 Lakh shares, which was only 37% of the total number of shares on offer.

Yudiz filed its draft red herring prospectus (DRHP) earlier this year with plans to raise INR 44.84 Cr via the IPO.

Its IPO comprises a fresh 27,17,600 equity shares issue of INR 10 face value each. The price band for the issue is set at INR 162-INR 165.

The IPO will conclude on August 8, 2023. The stock will list on the NSE’s SME platform.

Founded in 2011 and headquartered in Ahmedabad, Yudiz is a global IT services provider and consultant that offers solutions in web and mobile app development, AI/ML, AR/VR, IoT, and blockchain.

Yudiz reported a consolidated net profit of INR 73.89 Lakh in FY22, down from INR 80.57 Lakh in FY21. Operating revenue increased to INR 18.76 Cr in FY22 from INR 12.82 Cr in the prior fiscal.

Among the new-age tech startups, drone company DroneAcharya also took the SME IPO route last year. It listed at almost a 90% premium on the BSE SME platform despite an extremely volatile market condition. Its IPO was oversubscribed by 262X prior to the market debut.