Latent View IPO shareholder or not? Registrar's delay turns Twitter meme field
Applicants waited for the allotment news. Would they get those shares? Or would they lose their chance? The day went by, the night passed by, but there was no news from the Registrar.
- Total Shares
When Latent View’s IPO concluded on November 12, many applicants knew that getting their hands on those shares might be solely based on luck. Latent View was highly in demand. It had been a big contributor in the data analytics industry and was a coveted firm that was awesome in advanced predictive analysis, digital solutions and business analytics.
Moreover, it worked with over 30 Fortune 500 companies, and provided services to BFSI, CPG, Technology and other industries.
It was obvious. Latent was going to be oversubscribed. And getting some shares deserved celebration.
Photo: Getty Images
SUBSCRIPTION STATS: As expected, the 600 cr IPO was oversubscribed by a massive 326 times. What does that mean? Even though 1.75 cr shares were offered by the company, the applicants wanted 572.18 cr shares. It also became the most subscribed IPO ever, receiving nearly six times more bids than what Paytm received a week back.
Priced at Rs 192-197 per share, applicants could bid for a minimum of 76 equity shares (i.e, 1 lot) and multiples of 76 thereafter. That means an investor has to spend at least Rs 14,972 (i.e 76 shares*Rs 197 per share) if they applied for 1 lot.
SEBI regulates the IPO Process with the Registrar. Photo: Getty Images
Once application is complete, the allotment is done as per the prescribed rules and regulations of Securities Exchange Board of India (SEBI) by the Registrar. As per the rules, each type of investor is allotted a certain percentage of shares.
Retail Individual Investors (who are non professional investors and invest less than Rs 2 lakh for personal benefits) oversubscribed by 119 times, Qualified Institutional Buyers (like banks, mutual funds, venture capital funds - basically the organisations that are experts in finance) oversubscribed by 145 times.
But the biggest surprise was by non-institutional buyers (like individuals, trusts, NRIs, companies who invest more than Rs 2 lakh), who oversubscribed by 850 times.
Latent View is a Data Analytics Firm. Photo: Facebook
THE PROCESS: On the allotment date, applicants usually get a message or a notification from the bank or can check the link on the Registrar’s website for their allotment status. The Registrar (Link Intime Pvt Ltd) is an entity registered under the Securities Exchange Board of India (SEBI) and is qualified to electronically process all applications and carry out the allotment process.
The registrar was expected to announce the allotment details on November 17, but when it didn't do so, applicants turned restless, and for good reason. With about Rs 15,000 being stuck per lot in an IPO, slow refund meant loss of an opportunity to apply somewhere else!
Companies usually initiate the refund process to investors who are not allotted shares on the day of allotment or a day after the allotment. The others who receive an allotment see the credit of shares in their account in a couple of days (expected to be November 22 here). The IPO is most likely to get listed on November 23.
But since the Registrar's website could not update the allotment details, applicants turned to Twitter to share their anxiety. Take a look:
People were still waiting restlessly for the announcement:
Someone got alloted ONE lot, so he couldn't sleep:
Someone got 2 lots. He couldn't sleep either:
And then there were many who didn't get any, and beech mein phans gaye:
This is on another level altogether:
When you get rejected in lot of #IPO that you have read a lot of IPO details and RHP's that you end up having this kind of creativity. ???? #paytmlisting #LatentViewIPO #sapphireipo pic.twitter.com/8wGjS2CQb5— Prerith (@CAPrerithJain) November 18, 2021
Has this ever happened to you? Tell us in the comments!