Despite a tepid response received on day one of its initial public offering (IPO), Infibeam's public offer was subscribed 0.89 times on Tuesday.
Despite a tepid response received on day one of its initial public offering (IPO), Infibeam’s public offer was subscribed 0.89 times on Tuesday. With most of its bids coming in from high net-worth individuals, who oversubscribed their quota by 2.78 times, the e-commerce company’s public offer is likely to sail through.
Data from stock exchanges showed that 111 lakh shares out of the 125 lakh shares were bid for in total. Qualified institutional buyers (QIBs) subscribed 0.47 times or bid for 44 lakh shares of the 93 lakh shares reserved for their quota while high net-worth individuals (HNIs) bid for 52 lakh shares of the 18 lakh shares on offer for their category.
Retail investors on the other hand bid for 14 lakh shares out of the 12 lakh shares reserved for their category, subscribing nearly 1.17 times.
With two of the investment bankers who were earlier part of the issue stepping out amidst concerns over pricing and timing of the issue and no anchor investors to the offer, market participants didn’t show much enthusiasm when the issue opened.
The company plans to raise Rs 450 crore through the public offer with a price band of Rs 360- Rs 432. The company plans on using the proceeds of the IPO for setting up a cloud data centre, 75 logistics centres and purchasing software for general corporate purposes.