Sebi clears Infibeam IPO

The firm has got Sebi’s nod to mop-up an estimated Rs450 crore through an initial share sale


New Delhi: Online shopping portal Infibeam Incorporation Ltd has received markets regulator Securities and Exchange Board of India’s (Sebi’s) approval to mop-up an estimated Rs.450 crore through an initial public offering (IPO). It would become one of India’s first e-commerce firm to tap the IPO route. Gujarat-based Infibeam had filed the draft red herring prospectus (DRHP) with Sebi on 30 June for a public issue of its equity shares

Infibeam competes with Flipkart, Amazon, Snapdeal and others in the e-commerce space. Sebi cleared the proposed initial share sale and gave its final observations on the IPO on 30 September. In June, the markets watchdog had announced a new set of easier norms for listing of start-up firms on a separate platform of stock exchanges. However, Infibeam has decided to go for listing on the main board.

Founded in 2007, Infibeam runs several e-commerce services such as Infibeam.com, Indent, BuildaBazaar, Incept and Picsquare. Last year, Sony Music had bought a 26% stake in Indent. It has proposed to list its shares on NSE and BSE. The issue is being managed by SBI Capital Markets, Elara Capital Plc, ICICI Securities and Kotak Mahindra Capital Company. Infibeam plans to utilize the IPO proceeds towards setting up of cloud data centre, shifting its registered and corporate office, 75 logistics centres, purchase of software and for general corporate purposes.

Under the public offer, at least 75% of shares will be allotted on a proportionate basis to qualified institutional investors, while up to 60% of this portion can be given to anchor investors on a discretionary basis. Besides, 5% of the qualified institutional buyer portion (excluding the anchor investor portion) would be available for allocation on a proportionate basis to mutual funds only.