Infibeam makes debut at 3.17% above issue price

By: | Updated: April 5, 2016 3:01 AM

Pure e-commerce company Infibeam debuted on the bourses on Monday, with shares closing the day at `445.70 on BSE, a premium of 3.17% over the issue price of `432.

Pure e-commerce company Infibeam debuted on the bourses on Monday, with shares closing the day at `445.70 on BSE, a premium of 3.17% over the issue price of `432.

On NSE, shares of the firm closed at `445.55, a premium of 3.13% over its issue price. Total 73,42,816 shares were traded on the exchange. During the day, it surged to a high of `467 and a low of `440.25 on NSE.

Despite not boasting a good financial track record, Infibeam’s debut on the bourses seemed a fairly good one. The initial share sale of the company was oversubscribed 1.1 times. The qualified institutional buyers portion was subscribed 0.8 times, high net-worth individuals bid for the issue 2.23 times while retail investors had subscribed to the issue 1.3 times.

infibeam

The Ahmedabad-based company had raised `450 crore through its initial public offering (IPO) in a price band of `360- `432. The company will use the proceeds to set up a cloud data centre, 75 logistics centres and to buy software for corporate purposes.

Infibeam had turned profitable in the first half of FY16 as it posted a profit of`6.21 crore and a total revenue of `174.6 crore.

The book running lead managers to the issue were SBI Capital Markets and Elara Capital. With two of its earlier investment bankers — Kotak Mahindra Capital and ICICI Securities opting out of the issue, amidst concerns over pricing and timing of the issue.

Infibeam runs several e-commerce services such as Infibeam.com, buildabazaar, Incept and Picsquare. Infibeam had filed its draft prospectus with Sebi before the markets regulator announced the institutional trading platform (ITP). However, the company decided to list on the main stock exchanges although it did have a choice to subsequently migrate to ITP.

Out of the companies that got listed on the bourses recently, HealthCare global slumped 21% on its debut day while Bharat Wire Ropes saw a tepid response as the stock gained 0.40 points on its listing day.

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