Winro Commercial India Ltd., a company listed on the Bombay Stock Exchange (BSE), and which, according to its website is a non-banking financial company registered with the RBI, recently received an allotment of shares in the LG Electronics India IPO. That is not the story though.The company informed the exchanges on October 9, that it had placed applications for 65.65 lakh shares of LG Electronics India, as part of its three-day IPO, at a price of ₹1,140 per share, taking the total bid amount to ₹748.5 crore. The application was made under the Qualified Institutional Bidder (QIB) section.Winro Commercial’s market capitalization at the end of Friday’s trading session? ₹30.16 crore.
“Considering the oversubscription, the value of allotted shares is expected to fall below the threshold limit prescribed under Regulation 30(4)(i)(c)(2) of the SEBI (LODR) Regulations. This disclosure is being made as a measure of good corporate governance,” Winro Commercial said in its exchange filing.
The company received an allotment as well. In a separate filing on October 11, Winro Commercial said that it has been allotted 37,482 shares of LG Electronics India, at a price of ₹1,140 apiece, taking the total aggregate value of the investment to ₹4.27 crore.Winro Commercial in its filing stated that it is engaged in the business of investment in shares and securities. It is therefore, in normal course of business that the company is making an investment as a financial investor.According to a SEBI consultation paper, a Qualified Institutional Buyer is defined in multiple ways, including a public financial institution, and systemically important non-banking financial companies.The three-day LG Electronics India IPO was subscribed 54 times the total number of shares on offer, receiving bids worth nearly ₹4.5 lakh crore, compared to an issue size of ₹11,607 crore, making it the most bid Indian IPO.Shares of Winro Commercial ended 5% higher on Friday at ₹244.45. The stock trades on the BSE under the “XT” category, which is a sub-segment of the “T” (Trade-to-Trade) group, which is a surveillance measure for stocks. Stocks under these categories cannot be traded intraday and positions can only be taken on a delivery basis.
