BackInfibeam’s Rs450 crore IPO subscribed 0.63 times on Day 2
The qualified institutional buyers' portion gets subscribed 0.47 times, portion reserved for HNIs 1.4 times, while the retail portion sees 0.67 times subscription
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Mumbai: Infibeam Incorporation Ltd, the first Indian e-commerce firm to go public, saw its initial public offering (IPO) issue being subscribed 0.63 times on the second day of the share sale on Tuesday, data from National Stock Exchange (NSE) showed.
The qualified institutional buyers’ portion was subscribed 0.47 times. The portion reserved for high networth individuals (HNIs) was filled 1.4 times, while the retail portion was subscribed 0.67 times.
The Ahmedabad-based e-tailer, which aims to raise ₹ 450 crore from the share sale, has run into problems with two of the four domestic investment banks opting out on concerns over pricing and timing of the issue.
Kotak Mahindra Capital and ICICI Securities withdrew as bankers to the issue. SBI Capital Markets Ltd and Elara Capital (India) Pvt. Ltd are the two bankers managing the offer currently. The issue closes on Wednesday.
There were no anchor investors to the issue, and market participants said that it was again because of the pricing. Infibeam has fixed a price band of ₹ 360-432 per share for its public offer.
The company, founded by former Amazon executive Vishal Mehta, turned profitable in the first six months of 2015-16. Infibeam posted a revenue of ₹ 171.3 crore and a net profit of ₹ 6.6 crore for the six months ended September 2015. It reported a revenue of ₹ 288.2 crore at a net loss of ₹ 9.8 crore for the year ended 31 March 2015.
After the stock exchange listing, Infibeam will be valued at ₹ 2,250 crore, Mehta had said at a press conference earlier this month
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