3C IT Solutions IPO: SME issue subscribed over 20 times on day 4; retail investors show strong demand

The ongoing initial public offering (IPO) of 3C IT Solutions & Telecoms (India) has witnessed healthy demand from both retail and non-institutional investors (NIIs) during the fourth and final day of bidding. 

The IPO, which opened for subscription on Tuesday (June 4), received a favorable response from both retail and non-institutional investors. It achieved full subscription by the second day. On the final day, the IPO continued to attract strong interest from investors.

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The IPO garnered bids for 4,22,06,000 shares on the fourth day as against the total offering of 20,88,000 shares, resulting in an overall subscription rate of 20.21 times, according to Chittorgarh data.

The retail portion was booked 29.79 times on the fourth day, while the non-institutional investors' portion achieved a subscription rate of 10.63 times.

The company aims to raise ₹11.4 crore through its IPO, comprising a combination of fresh equity shares and an offer for sale. The price band for the offer is set at ₹52 per equity share, with a face value of ₹5 each. The IPO lot size is fixed at 2,000 shares, requiring a minimum investment of ₹104,000 for retail investors.

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Proceeds from the IPO will be utilised to fund working capital requirements, repay or prepay certain borrowings, and for general corporate purposes. The IPO allotment is scheduled for June 10, with shares expected to be credited to eligible investors' demat accounts on June 11. Refunds for unsuccessful bidders will also be initiated on the same day.

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The listing date for the 3C IT Solutions IPO is set for June 12, with the equity shares to be listed on BSE SME. Kreo Capital Pvt Ltd is the book-running lead manager of the IPO, while Skyline Financial Services Pvt Ltd is the IPO registrar.

Ranjit Kulladhaja Mayengbam and Gangarani Devi Mayengbam are the promoters of 3C IT Solutions & Telecoms (India) Ltd. Following the IPO, the promoter shareholding will decrease from 72 per cent to 51.66 per cent.

Incorporated in 2015, 3C IT Solutions & Telecoms (India) Limited is an IT systems integration company. The company offers various IT products and services bifurcated under 3 segments, i.e., infrastructure solutions, digital business solutions, and consulting solutions, to meet client requirements.

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"The company is operating in a highly competitive and fragmented segment of IT system integration solutions service providing. It posted inconsistency in its top and bottom lines for the reported periods."

"Based on FY24 annualized earnings, the issue appears aggressively priced. Tiny equity capital post-IPO indicates longer gestation for migration to the mainboard. There is no harm in skipping this risky bet," said Dilip Davda, the contributing editor at Chittorgarh.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.