Blockbuster IPO! Affle India public offer for Rs 459 crore subscribed 86 times on last day

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Published: July 31, 2019 5:10:07 PM

Affle India IPO (initial public offering) for Rs 459 crore has turned out to be a blockbuster, as the issue has been subscribed by more than 86 times on last day.

IPO, Affle India, Affle India ipo, initial public offer, ICICI Securities, Nomura Financial AdvisoryThe public offer has received total bids for 29.19 crore as against the issue size of 33 lakh.

Affle India IPO (initial public offering) for Rs 459 crore has turned out to be a blockbuster, as the issue has been subscribed by more than 86 times so far on last day. The public offer has received total bids for 29.19 crore as against the issue size of 33 lakh. Non-institutional portion saw the highest demand, with the investors from the category bidding for 199 times their reserved share. QIB’s bid for a total of 56 times their reserved portion, while retail investors bid for a total of 11 times their share. As at the end of yesterday, the initial public offer of Affle India was subscribed 81% on the second day of bidding.

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The IPO consists of a fresh issue of Rs 90 crore and an offer for sale of 49,53,020 equity shares, including anchor portion of 27,72,483 equity shares. Affle India IPO to raise up to Rs 459 crore opened for subscription on 29th July 2019. The firm had fixed a price band of Rs 740-745 per share. Affle India on Friday raised about Rs 206.55 crore from 15 anchor investors. The public offering includes a fresh issue of shares worth Rs 90 crore and an offer for sale (OFS) of 49,53,020 equity shares. The proceeds from fresh issue will be used towards inorganic acquisitions and working capital.

Affle (India) is a global technology firm, that aims to enhance returns on marketing spend by delivering contextual mobile ads and reducing digital ad fraud. Notably, the firm has two major business segments– Consumer Platform and Enterprise Platform, with the consumer platform making up 97% of the total revenues of the firm.  The Consumer Platform (97% of revenue) helps in new consumer conversions through relevant mobile advertising, retargeting existing consumers to complete transactions for e-commerce companies, an online to offline platform that converts online engagement into in-store walk-ins, Motilal Oswal said in its IPO note.

According to Motilal Oswal, the valuations are rich for the public offer. “Based on FY19 consolidated numbers, the issue is priced at a P/E of 39x. The company is in a niche high growth segment, with no listed peers in India. Due to its unique business model and first of its kind listing, there is a lot of market interest in the IPO. However, given the rich valuations and technological risks in the business, investors with a high risk appetite could look at the issue only from a listing gains perspective,” Motilal Oswal said in the note.

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