Peshwa Wheat IPO prospectus gives conflicting retail allocations

Peshwa Wheat IPO gives three incompatible measures for the portion available to individual investors: 25,03,200 equity shares in its issue-structure table, 55% of the 50,04,000-share net issue in a note, and 35% in its book-building procedure. The share figure matches neither percentage, leaving no single disclosed individual-investor allocation.

What retail allocations does Peshwa Wheat IPO disclose?

Peshwa Wheat IPO discloses 25,03,200 equity shares, 55% of the net issue and 35% of the net issue for individual investors in the issue-structure material on pages 309 to 315. The issue-structure table on page 309 says individual investors applying for the minimum application size will receive not less than 25,03,200 equity shares. The percentage row in that same table instead says the category will receive not less than 35% of the net issue.

Note (2) to the table on page 314 changes the threshold to not less than 55% of the net issue for individual investors applying for the minimum application size. The book-building procedure on page 315 then returns to the 35% threshold. These are three statements in provisions that each describe the allocation framework for the same book-built issue.

Peshwa Wheat IPO defines the net issue as 50,04,000 equity shares after deducting a 2,95,200-share market-maker reservation from the 52,99,200-share total issue. The document says the market-maker reservation is 5.57% of the total issue, while the net issue represents 26.30% of post-issue paid-up equity share capital. That stated denominator makes the three individual-investor disclosures directly comparable.

Do the stated retail allocations reconcile with the net issue?

No, the 25,03,200-share figure does not equal either 55% or 35% of Peshwa Wheat IPO's stated 50,04,000-share net issue. The table figure represents about 50.02% of the net issue. A 55% allocation would be 27,52,200 shares, while a 35% allocation would be 17,51,400 shares.

The difference between 25,03,200 shares and the 55% equivalent is 2,49,000 shares. The difference between 25,03,200 shares and the 35% equivalent is 7,51,800 shares. Applying the two percentage thresholds to the same 50,04,000-share net issue creates a difference of 10,00,800 shares.

The 25,03,200-share threshold is close to half of the net issue, but the prospectus does not identify a separate denominator that would produce that number. The issue-structure table expressly uses the net issue for both its 35% statement and the qualified institutional buyer, or QIB, and non-institutional applicant categories. No explanatory text on pages 309 to 315 links the 25,03,200 shares to the 55% or 35% disclosure.

Which provisions create Peshwa Wheat IPO's allocation uncertainty?

Peshwa Wheat IPO's allocation uncertainty arises because the conflicting statements appear in the category table, its explanatory note and the book-building procedure. Page 309 is headed “Issue Structure” and contains both the 25,03,200-share floor and the 35% of net issue statement. Note (2) on page 314 presents the 55% threshold as a rule under the Securities and Exchange Board of India, or SEBI, Issue of Capital and Disclosure Requirements, or ICDR, Regulations.

The “Book Building Procedure” on page 315 again says not less than 35% of the net issue shall be available to individual investors applying for the minimum application size. That section also says QIBs may receive not more than 50% of the net issue and non-institutional investors not less than 15%. It cites Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, or SCRR, and Regulation 252 of the SEBI ICDR Regulations.

The individual-investor column adds another unresolved detail because the trading-lot and minimum-allotment figures remain marked “[●]” on pages 313 and 314. The minimum-bid row says an individual bid must exceed Rs 2 lakh and be two lots per application. Without a completed lot size, the excerpt does not permit conversion of the two-lot condition into a fixed share quantity.

Why does the retail-allocation conflict matter for allotment?

The retail-allocation conflict matters because Peshwa Wheat IPO says individual-investor allotment will be proportionate, subject to a minimum allotment of an unspecified “[●]” number of shares and further allotment in multiples of that figure. A pool of 17,51,400 shares, 25,03,200 shares or 27,52,200 shares would leave materially different supply for that calculation. The disclosed range between the two percentage-based outcomes is 10,00,800 shares.

The prospectus permits spillover for under-subscription in any category except the QIB portion. Page 314 says the company may meet such under-subscription through spillover from another category or a combination of categories, in consultation with the book running lead manager, or BRLM, and the designated stock exchange, subject to applicable law. That mechanism concerns under-subscription after the category allocation is set; it does not state which of the three individual-investor starting allocations applies.

Peshwa Wheat IPO requires applications through the Application Supported by Blocked Amount, or ASBA, process, and permits the Unified Payments Interface, or UPI, mechanism for applicable individual applications. The prospectus cites a SEBI circular dated May 30, 2022 requiring application money to be blocked before processing. It also says a delay exceeding four working days in unblocking ASBA amounts requires compensation of rupees 100 per day for the period beyond four working days.

What would resolve Peshwa Wheat IPO's retail-allocation disclosure?

A correction would need to identify one governing individual-investor threshold and align it with the 50,04,000-share net issue stated on page 309. If the intended threshold is 55%, the corresponding quantity is 27,52,200 shares. If the intended threshold is 35%, the corresponding quantity is 17,51,400 shares; if 25,03,200 shares is intended, the prospectus would need to identify the calculation or denominator behind it.

The same clarification would need to amend or reconcile the page 309 category table, note (2) on page 314 and the page 315 book-building procedure. Peshwa Wheat IPO says it may withdraw the issue before opening in consultation with the BRLM, and may withdraw after opening but before allotment by publishing reasons. If the issue proceeds, the final basis of allotment is to be determined with the designated stock exchange under the disclosed issue programme.

Conclusion

Peshwa Wheat IPO's stated 50,04,000-share net issue provides a defined base for testing the three individual-investor allocations, and they do not agree. The issue-structure table gives 25,03,200 shares, the table and book-building procedure give 35%, and note (2) gives 55%, creating outcomes separated by as many as 10,00,800 shares.

The next item to watch is a revised or clarifying disclosure that identifies the governing individual-investor pool and completes the remaining “[●]” lot-size fields. The prospectus also leaves the company with a stated withdrawal option before allotment, while any completed allocation would be subject to valid bids, the disclosed spillover rules and the designated stock exchange's basis-of-allotment process.