Veto Switchgears IPO Details

Issue Open Dec 3, 2012
Issue Close Dec 5, 2012
IPO Price ₹50
Face Value ₹10
IPO Size ₹25.00 Cr
Listing At NSE SME
IPO Lot Size 3000

VETO SWITCHGEARS AND CABLES LIMITED

Our Company was originally incorporated as a partnership firm on June 26,2003 under the name and style 'Veto Industries'. On April 1, 2007 the name of the firm was changed to 'Veto Switchgears and Cables', Subsequently, on June 20,2007, the partnership firm was converted in to the private limited company under the name and style 'Veto Switchgears and Cables Private Limited' under part IX of the Companies Act, 1956. The name of our company was further changed to the present name, pursuant to which a fresh certificate of incorporation dated August 3,2012 was issued by Registrar of Companies, Maharashtra, Mumbai. The Corporate Identification Number is U3140MH2007PLC171844. For further details, please see section 'History and Other Corporate Matters' on page 71 of the Prospectus.

Registered Office: D-2, First Floor, Malad Industrial Estate, Ramchandra Lane Extn.,
Kanchpada, Malad (West), Mumbai 400064.
Tel: +91 22 2880 7704; Fax: +91 22 2888 4104
Corporate Office: 230, Sindhi Colony, Raja Park, Jaipur 302004. Tel: +91 141 4100410; Fax: +91 141 4100415 Contact Person: Ms Vandana Ravi, Company Secretary and Compliance Officer;
Email: cs.vandana@vetoswitchgears.com; Group Chief Financial Officer: Mr. R V. Sharma;
Email: cfo@vetoswitchgears.com; Website: www.vetoswitchgears.com

Promoter of the company: Veto Electropowers (India) Pvt. Ltd., Mr. Vishnu Kumar Gurnani, Mr. Mohan Das Gurnani, Mr. Narayan Das Gurnani

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 5,000,000 EQUITY SHARES OF FACE VALUE OF Rs. 10/- EACH FOR CASH AT A PRICE OF Rs. 50/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 40/- PER EQUITY SHARE) AGGREGATING UPTO Rs. 2,500/- LACS (THE 'ISSUE') BY OUR COMPANY, OF WHICH 834,000 EQUITY SHARES ARE RESERVED FOR SUBSCRIPTION BY MARKET MAKER TO THE ISSUE ('MARKET MAKER RESERVATION PORTION'). THE ISSUE LESS THE MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 4,166,000 EQUITY SHARES OF Rs. 10/- EACH IS HEREINAFTER REFERRED TO AS THE 'NET ISSUE'. THE ISSUE AND THE NET ISSUE CONSTITUTES 30.01 % AND 25.01%, RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF THE COMPANY

THE FACE VALUE OF EQUITY SHARES IS Rs. 10/- PER SHARE AND THE ISSUE PRICE IS 5 TIMES OF
THE FACE VALUE OF THE EQUITY SHARES

The Issue is being made through a Book Building Process & in accordance with Chapter XB (applicable to Issue of specified Securities by Small & Medium Enterprises (SME) of the Securities and Exchange Board of India (Issue of capital and Disclosure Requirements) Regulations, 2009, as amended.

This was an issue wherein not more than 25% of the net Issue was available for allocation on a proportionate basis to Qualified Institutional Buyers (QIB), of which 5% shall be reserved for Mutual Funds. Further, not less than 40% of the net Issue was available for allocation on a proportionate basis to Non Institutional Bidders (NIB) and not less than 35% of the net Issue was available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. The Issue opened for subscription on Monday, December 3,2012 and closed on Wednesday, December 5,2012. The details of the applications received in the Offer from Market Maker, QIB, NIB and Retail Individual Bidders are as under (Before Technical Rejection but after cheque returns);

Category No. of Applications No. of Shares No. of times Subscriptions
Retail Individual Bidders 987 2961000 2.03
Non Institutional Bidders 61 2786160 1.67
Qualified Institutional Bidders 4 1137000 1.09
Market Maker 1 834000 1.00
Total 1053 7718160 1.54

Final Demand
A summary of the final demand as on the Bid/Offer Closing date at different bid price is as under:

Price (Rs.) No. of Equity Shares % to Total Cumulative Total Cumulative % to Total
48.00 48000 0.59 8103000 100.00
50.00 5481000 67.64 8055000 99.41
Cut-off 2574000 31.77 2574000 31.77
Total 8103000 100.00

There were no bids received at Rs. 49/-

The Basis of Allotment was finalised in consultation with NSE on December 10,2012. While finalizing the allotment, due to rounding off to the nearest multiple of minimum lot, 1,000 additional equity shares were allotted over and above the size of the issue. The synopsis of the basis (after technical rejections) is given below:

Allotment to the Market Maker Category
The Basis of Allotment to the Market Maker at the Issue Price of Rs.50/- per Equity Share was finalized in consultation with NSE. This category had 1 valid application for 8,34,000 Equity Shares against 8,34,000 Equity Shares reserved for this category resulting in subscription of 1.00 time.

Allotment to other categories
While rounding off the lot size of 3000 equity shares in QIB and HNI category same is done at a lower multiple of 3000 equity shares. The unallocated portion due to such rounding off in QIB and HNI category is added back to the retail category. Accordingly the basis of allotment for all the categories has been made as follows:

A) Allotment to Qualified Institutional Buyers (QIB) Category
The Basis of Allotment to the QIBs at the Issue Price of Rs.50/- per Equity Share was finalized in consultation with NSE. 3 (three) valid applications for 1098000 Equity Shares were received against 1041500 Equity Shares reserved for this category resulting in subscription of 1.05 times after rounding off, the allotment in QIB category is as below.

Category Fls/Banks Flls MFs ICs VCs Total
No. of equity shares 378000 660000 - . - - 1038000

B) Allotment to Non Institutional Bidders
The Basis of Allotment to the NIBs at the Issue Price of Rs. 50/- per Equity Share was finalized in consultation with NSE. Overall 58 valid applications for 2562000 Equity Shares were received, against 1666400 Equity Shares reserved for this category resulting in subscription of 1.54 times. The categorywise details of basis of allotment is as follows:

Category No. of Applns. % to Total Total No. of Equity Shares applied % to Total No. of Equity Shares allotted Ratio Total No. of Equity Shares allotted
6000 15 25.86 90000 3.51 3000 Firm 45000
9000 7 12.07 63000 2.46 3000 Firm 21000
12000 5 8.62 60000 2.34 6000 Firm 30000
15000 2 3.45 30000 1.17 9000 Firm 18000
18000 7 12.07 126000 4.92 9000 Firm 63000
24000 1 1.72 24000 0.94 15000 Firm 15000
27000 1 1.72 27000 1.05 15000 Firm 15000
30000 2 3.45 60000 2.34 18000 Firm 36000
36000 1 1.72 36000 1.41 21000 Firm 21000
51000 5 8.62 255000 9.95 33000 Firm 165000
60000 1 1.72 60000 2.34 39000 Firm 39000
96000 1 1.72 96000 3.75 60000 Firm 60000
99000 1 1.72 99000 3.86 63000 Firm 63000
102000 3 5.17 306000 11.94 66000 Firm 198000
114000 1 1.72 114000 4.45 72000 Firm 72000
198000 3 5.17 594000 23.19 126000 Firm 378000
222000 1 1.72 222000 8.67 144000 Firm 144000
300000 1 1.72 300000 11.71 195000 Firm 195000
Total 58 100.00 2562000 100.00 1578000

C) Allotment to Retail Individual Bidders (Including ASBA Applications)
The Basis of Allotment to the Retail Individual Bidders, who have bid at Cut-off Price or at the Issue Price of Rs.50/- per Equity Share, was finalized on a proportionate basis in consultation with NSE. Overall 964 valid applications for 2892000 Equity Shares were received, against 1458100 Equity Shares reserved for this category resulting in subscription of 1.98 times. Un-allotted portions of QIB and NIB due to rounding off to the extent of 91900 equity shares have been added to the retail category for allotment. The details of equity shares allotted in Retail category are as under:

Category No. of Applns. % to Total Total No. of Equity Shares applied % to Total No. of Equity Shares allotted Ratio Total No. of Equity Shares allotted
3000 964 100 2892000 100 3000 49:97 1461000
3000 7:92 90000*
Total 964 100 2892000 100 1551000

*un-allocated portions of QIB and NIB.

The Board of Directors of the Company in its' meeting held on December 11,2012 has taken on record the Basis of Allotment of Equity Shares as approved by The National Stock Exchange of India (Designated Stock Exchange) and has allotted the Equity Shares to various successful applicants and, has also authorized corporate action for the allotment of equity shares to successful bidders.

The Allotment advice and/or notices have been dispatched to the address of the allottees as registered with the depositories. Further the instructions to the SCSBs have been dispatched/mailed on December 11,2012. In case the same is not received within ten days, investors may contact the Registrar at the address given below.

Commencement of Trading: The Equity Shares Allotted to successful applicants has been credited on December 12,2012 to the beneficiary accounts subject to validation of the account details with the depositories concerned. The equity shares of the Company will be listed and admitted for trading on NSE-Emerge platform with effect from December 13,2012.

Investors please note: The details of the allotment made has been hosted on the website of the Registrar to the Issue, Bigshare Services Private Limited at Website: http://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 applicant, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below:

Bigshare Services Private Limited
E-2, Ansa Industrial Estate, Saki Vihar Road, Saki Naka, Andheri (East), Mumbai 400 072
Contact Person: Mr. Ashok Shetty; SEBI Registration No.: INR 000001385
Tel: +91 22 404 30 200; Fax: +91 22 2847 5207; Website: www.bigshareonline.com; Email: ipo@bigshareonline.com

Date:  December 12, 2012
Place: Mumbai
For Veto Switchgears and Cables Limited
Sd/-
Managing Director

Veto Switchgears IPO Basis of Allotment FAQs

  1. 1. How shares are allotted in Veto Switchgears IPO?

    Check the basis of allotment document above to know about how the shares are allocated in Veto Switchgears 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 Veto Switchgears IPO basis of allotment status?

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

    Visit the Veto Switchgears IPO allotment status page to check the number of shares allocated to your application.

  3. 3. What is Veto Switchgears IPO allotment process?

    Check the basis of allotment document above to know about how the shares are allocated in Veto Switchgears 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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