RKEC Projects IPO Details

Issue Open Sep 25, 2017
Issue Close Sep 28, 2017
IPO Price ₹45
Face Value ₹10
IPO Size ₹28.70 Cr
Listing At NSE SME
IPO Lot Size 3000

RKEC PROJECTS LIMITED

Corporate Identification Number: U45200AP2005PLC045795

Our Company was originally incorporated on April 01, 2005 as 'RKEC Projects Private Limited' vide Registration no. 045795 under the provisions of the Companies Act, 1956 with the Registrar of Companies, Andhra Pradesh, Hyderabad. The Company after its incorporation takeover the running business of a proprietorship firm of our Promoter Mr. Radhakrishna Garapati with effect from April 01, 2006 'RK Engineers & Contractors'. Further, Our Company was converted into a Public Limited Company pursuant to Shareholders Resolution passed at the Extra Ordinary General Meeting of the Company held on October 31, 2016 and the name of the our company was changed to 'RKEC Projects Limited' vide a fresh Certificate of incorporation dated November 10,2016, issued by the Registrar of Companies, Hyderabad having CIN U45200AP2005PLC045795. For further details please refer to chapter titled 'History and Certain Corporate Matters' beginning on page 103 of the Prospectus.

Registered Office: Door No. 10-12-1, Rednam Alcazar, 3rd Floor, Opp: SBI Main Branch, Old Jail Road, Rednam Gardens, visakhapatnam, Andhra Pradesh -530020. | Tel. No: +91-891-257-45171 Fax No.: +91-891-257-4703 | E-mail: info@rkecprojects.com | Website: www.rkecprojects.com

CONTACT PERSON: MS. SWAPNA BANSODE, (COMPANY SECRETARY & COMPLIANCE OFFICER) | PROMOTER OF OUR COMPANY: MR. RADHAKRISHNA GARAPATI

BASIS OF ALLOTMENT

INITIAL PUBLIC ISSUE OF 63,78,000 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ('EQUITY SHARES') OF RKEC PROJECTS LIMITED ('COMPANY' OR 'ISSUER') FOR CASH AT A PRICE OF RS 45.00 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS 35.00 PER EQUITY SHARE) ('ISSUE PRICE') AGGREGATING TO RS 2870.10 LAKHS ('ISSUE') CONSISTING OF A FRESH ISSUE OF 46,78,000 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ('EQUITY SHARES') FOR CASH AT A PRICE OF RS 45.00 PER EQUITY SHARE AGGREGATING TO RS 2105.10 LAKHS ('ISSUE') AND 17,00,000 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ('EQUITY SHARES') FOR CASH AT A PRICE OF 45.00 PER EQUITY SHARE AGGREGATING TO RS 765.00 LAKHS THROUGH AN OFFER FOR SALE BY MR. RADHAKRISHNA GARAPATI ('REFERRED AS SELLING SHAREHOLDER & PROMOTER') OF WHICH 3,24,000 EQUITY SHARES OF FACE VALUE OF RS 10.00 EACH FOR A CASH PRICE OF RS 45.00 PER EQUITY SHARE, AGGREGATING TO RS 145.80 LAKHS WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKER ('MARKET MAKER RESERVATION PORTION'). THE ISSUE LESS THE MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 60,54,000 EQUITY SHARES OF FACE VALUE OF RS 10.00 EACH AT AN ISSUE PRICE OF RS 45.00 PER EQUITY SHARE AGGREGATING TO RS 2724.30 LAKHS (IS HEREINAFTER REFERRED TO AS THE 'NET ISSUE'). THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 26.59% AND 25.23%, RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY. FOR FURTHER DETAILS, PLEASE REFER TO SECTION TITLED 'TERMS OF THE ISSUE' BEGINNING ON PAGE 201 OF THE PROSPECTUS.
THIS ISSUE IS BEING MADE IN TERMS OF CHAPTER XB OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009(THE 'SEBI ICDR REGULATIONS'), AS AMENDED.

THE FACE VALUE OF THE EQUITY SHARES IS RS 10 EACH AND THE ISSUE PRICE IS RS 45.00 EACH.
THE ISSUE PRICE IS 4.5 TIMES OF THE FACE VALUE
ISSUE OPENED ON MONDAY, SEPTEMBER 25, 2017 AND CLOSED ON THURSDAY, SEPTEMBER 28, 2017.
PROPOSED LISTING: OCTOBER 09,2017*

The Equity Shares offered through Prospectus are proposed to be listed on the SME Platform of National Stock Exchange of India Limited ('NSE EMERGE'). In terms of the Chapter XB of the SEBI (ICDR) Regulations, 2009, as amended; we are not required to obtain an in-principle listing approval for the shares being offered in this issue. However, our Company has received an approval letter dated January 16, 2017 from NSE for using its name In this offer document for listing of our shares on the SME Platform of NSE ('NSE EMERGE'). For the purpose of this Issue, the Designated Stock Exchange will be the National Stock Exchange of India Limited. The trading is proposed to be commenced on or about October 09,2017.*
'Subject to receipt of listing and trading approvals from the NSE.

All Applicants were allowed to participate in the issue through APPLICATION SUPPORTED BY BLOCKED AMOUNT ('ASBA') process by providing the details of the respective bank accounts in which the corresponding application amounts were blocked by Self Certified Syndicate Banks (the 'SCSBs').

SUBSCRIPTION DETAILS

The issue has received 7972 applications for 11,47,56,000 Equity Shares resulting in 17.99 times subscription (including reserved portion of market maker). The details of the applications received in the issue (before technical & multiple rejections) are as follows:
Detail of the Applications Received (Before Technical & Multiple Rejection):

Category Number Of Applications % Number Of Equity Shares % Subscription (Times)
Market Maker 1 0.01 3,24,000 0.28 1.00
Retail Individual Investors 7746 97.17 2,35,29,000 20.50 7.77
Other than Retail Individual Investors 225 2.82 9,09,03,000 79.21 30.03
TOTAL 7972 100.00 11,47,56,000 100.00 17.99

The details of applications rejected by the Registrar on technical grounds (including withdrawal) are detailed below:

Category No. of Applications No. of Equity Shares
Market Maker Nil Nil
Retail Individual Investors 107 6,12,000
Other than Retail Individual Investors 5 3,90,000
TOTAL 112 10,02,000

After eliminating technically rejected applications, the following tables give us category wise net valid applications:

Category No. of
Applications
% Reserved Portion
(as per Prospectus)
No. of Valid
Shares applied
% of Total
Applied
Subscription
(Times)
Market Maker 1 100 324000 324000 100 1.00
TOTAL 1 100 324000 324000 100 1.00
Category No. of
Applications
% Reserved Portion
(as per Prospectus)
Proportionate Issue
Size (After rounding off)
No. of Valid
Shares applied
% of Total
Applied
Subscription
(Times)
Retail Individual Investors 7639 97.20 30,27,000 30,27,000 2,29,17,000 20.20 7.57
Other than Retail Individual Investors 220 2.80 30,27,000 30,27,000 9,05,13,000 79.80 29.90
TOTAL 7859 100 60,54,000 60,54,000 11,34,30,000 100 18.74

Allocation: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - National Stock Exchange Limited on October 04,2017.

A. Allocation to Market Maker (After Technical & Multiple Rejections and Withdrawal): The Basis of Allotment to the Market Maker, at the issue price of Rs 45 per Equity Share, was finalised in consultation with National Stock Exchange Limited. The category was subscribed by 1.00 times. The total number of shares allotted in this category is 3,24,000 Equity shares.
The category wise details of the Basis of Allotment are as under:

No. of Shares
Applied for
(Category
wise)
No. of
Applications
received
% to Total Total No. of Equity Shares
applied in this Category
% of Total Proportinate
Shares Available
Allocation per Applicant
(Before Rounding Off)
Allocation per Applicant
(After
Rounding Off)
Ratio of
Allottees to Applicant:
Ratio 1
Ratio of
Allottees to
Applicant:
Ratio 2
Number of
Successful
applicant (after
rounding off)
Total No.
of Shares
allocated/
allotted
No. of
Shares
Surplus/
Deficit
3,24,000 1 100.00 3,24,000 100.00 3,24,000 3,24,000 3,24,000 1 1 1 3,24,000 -
TOTAL 1 100.00 3,24,000 100.00 3,24,000 1 3,24,000 -

B. Allocation to Retail Individual Investors (After Technical & Multiple Rejections and Withdrawal): The Basis of Allotment to the Retail Individual Investors, at the issue price of Rs 45 per Equity Share, was finalized in consultation with National Stock Exchange Limited. The category was subscribed by 7.57 times i.e. for 2,29,17,000 Equity Shares. Total number of shares allotted in this category is 30,27,000 Equity Shares to 1009 successful applicants.
The category wise details of the Basis of Allotment are as under:

No. of Shares
Applied for
(Category
wise)
No. of
Applications
received
% to Total Total No. of Equity Shares
applied in this Category
% of Total Proportinate
Shares Available
Allocation per Applicant
(Before Rounding Off)
Allocation per Applicant
(After Rounding Off)
Ratio of
Allottees to Applicant:
Ratio 1
Ratio of
Allottees to
Applicant:
Ratio 2
Number of
Successful
applicant (after
rounding off)
Total No.
of Shares
allocated/
allotted
No. of
Shares
Surplus/
Deficit
3000 7639 100.00 22917000 100.00 3027000 396.26 3000 1009 7639 1009 3027000 0
TOTAL 7639 100.00 22917000 100.00 3027000 1009 3027000 0

C. Allocation to Other than Retail Individual Investors (After Technical Rejections & Withdrawal): The Basis of Allotment to Other than Retail Individual Investors, at the issue price of Rs 45 per Equity Share, was finalized in consultation with National Stock Exchange Limited. The category was subscribed by 29.90 times i.e. for 9,05,13,000 shares. Total number of shares allotted in this category is 30,27,000 Equity Shares to 148 successful applicants.
The category wise details of the Basis of Allotment are as under: (Sample)

No. of Shares
Applied for
(Category
wise)
No. of
Applications
received
% to Total Total No. of Equity Shares
applied in this Category
% of Total Proportinate
Shares Available
Allocation per Applicant
(Before Rounding Off)
Allocation per Applicant
(After Rounding Off)
Ratio of
Allottees to Applicant:
Ratio 1
Ratio of
Allottees to
Applicant:
Ratio 2
Number of
Successful
applicant (after
rounding off)
Total No.
of Shares
allocated/
allotted
No. of
Shares
Surplus/
Deficit
6000 29 13.18 174000 0.19 5819 200.66 3000 2 29 2 6000 181
9000 10 4.55 90000 0.10 3010 300.98 3000 1 10 1 3000 -10
27000 5 2.27 135000 0.15 4515 902.95 3000 2 5 2 6000 1485
48000 1 0.45 48000 0.05 1605 1605.25 3000 1 1 1 3000 1395
69000 1 0.45 69000 0.08 2308 2307.55 3000 1 1 1 3000 692
99000 4 1.82 396000 0.44 13243 3310.83 3000 1 1 4 12000 -1243
114000 2 0.91 228000 0.25 7625 3812.47 3000 1 1 2 6000 -1625
132000 2 0.91 264000 0.29 8829 4414.44 3000 1 1 2 6000 -2829
132000 3000 1 2 0 3000 3000
144000 1 0.45 144000 0.16 4816 4815.75 6000 1 1 1 6000 1184
150000 2 0.91 300000 0.33 10033 5016.41 6000 1 1 2 12000 1967
210000 2 0.91 420000 0.46 14046 7022.97 6000 1 1 2 12000 -2046
231000 2 0.91 462000 0.51 15451 7725.27 6000 1 1 2 12000 -3451
231000 3000 1 2 0 3000 3000
300000 3 1.36 900000 0.99 30098 10032.81 9000 1 1 3 27000 -3098
300000 3000 1 3 0 3000 3000
450000 1 0.45 450000 0.50 15049 15049.22 15000 1 1 1 15000 -49
666000 5 2.27 3330000 3.68 111364 22272.84 21000 1 1 5 105000 -6364
666000 3000 2 5 0 6000 6000
1443000 1 0.45 1443000 1.59 48258 48257.83 48000 1 1 1 48000 -258
2223000 1 0.45 2223000 2.46 74343 74343.14 75000 1 1 1 75000 657
4887000 3 1.36 14661000 16.20 490304 163434.52 162000 1 1 3 486000 -4304
4887000 3000 1 3 0 3000 3000
5331000 1 0.45 5331000 5.89 178283 178283.09 177000 1 1 1 177000 -1281
6000000 1 0.45 6000000 6.63 200656 200656.26 201000 1 1 1 201000 344
TOTAL 220 100.00 90513000 100.00 3027000 148 3027000 0

The Board of Directors of the Company at its meeting held on October 04,2017 has approved the Basis of Allocation of Equity Shares as approved by the Designated Stock Exchange viz. NSE at a meeting held on October 04, 2017 and has authorized the corporate action for the transfer and allotment of the Equity Shares to various successful applicants.
The CAN-cum-Refund advices and allotment advice and/or notices will be forwarded to the address of the Applicants as registered with the depositories / as filled in the application form on or before October 06,2017. Further, the instructions to Self Certified Syndicate Banks for unblocking the amount will be processed on or about October 05,2017 In case the same is not received within 10 days, investors may contact at the address given below. The Equity Shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is taking steps to get the Equity Shares admitted for trading on the SME Platform of National Stock Exchange of India Limited within six working days from the date of the closure of the Issue.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated September 18,2017 ('Prospectus')

INVESTORS PLEASE NOTE

The details of the allotment made would also be hosted on the website of the Registrar to the Issuer, Bigshare Services Private Limited at www.bigshareonline.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicants, serial number of the Application Form, number of shares applied for and Bank Branch where the application had been lodged and payment details at the address of the Registrar given below:

BIGSHARE SERVICES PRIVATE LIMITED
Bharat Tin Works Bldg, 1st Floor, Opp. Vasant Oasis Makwana Road,
Marol, (Andheri East), Mumbai-4000059.
Tel: +91 22 62638200
Fax:
+91 22 62638299
E-mail: ipo@bigshareonline.com
Investor Grievance Email: investor@bigshareonline.com
Website: www.bigshareonline.com
Contact Person: Mr. Ashok Shetty
SEBI Registration No.: INR000001385
Registrar & Share Transfer Agent to the Company - Bigshare Services Private Limited

Place : Visakhapatnam, Andhra Pradesh

Date: October 05,2017

For RKEC Projects Limited
On behalf of the Board of Directors
Sd/-
Mr. Radhakrishna Garapati
Chairman & Managing Director

RKEC Projects IPO Basis of Allotment FAQs

  1. 1. How shares are allotted in RKEC Projects IPO?

    Check the basis of allotment document above to know about how the shares are allocated in RKEC Projects IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).
  2. 2. What is RKEC Projects IPO basis of allotment status?

    The RKEC Projects IPO basis of allotment (published above) tells you how shares are allocated to you in RKEC Projects IPO and category wise demand of IPO share.

    Visit the RKEC Projects IPO allotment status page to check the number of shares allocated to your application.

  3. 3. What is RKEC Projects IPO allotment process?

    Check the basis of allotment document above to know about how the shares are allocated in RKEC Projects IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).








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