Finelistings Tech Listing: Stock makes muted market debut, lists with a mere 3.25% premium at ₹127
Finelistings Technologies had a strong market debut with shares opening at ₹127, a 3.25% premium. The SME IPO received high subscription of 37 times, primarily from retail and non-institutional buyers.
Finelistings Technologies made a solid market debut today, May 14, 2024, as its shares opened at ₹127 each on BSE SME, indicating a premium of 3.25% over the issue price of ₹123. However, the stock jumped to Rs. 137 right after the listing, indicating a 11.38% jump over the issue price.
The SME IPO, valued at ₹13.53 crore, was open for subscription from May 07 to May 09, 2024, at a price of ₹123 per share. It consisted solely of a fresh issue of 11 lakh of newly issued shares, without any offer-for-sale component.
The IPO received a healthy response, with an overall subscription of 37 times. Retail investors showed significant interest, subscribing 38.96 times, while non-institutional buyers displayed strong enthusiasm with a subscription of 29.85 times.
The company plans to use the net funds from the offering for three purposes: general corporate purposes, software acquisition, and working capital requirements.
Finelistings Technologies operates in diverse sectors, including the retail of pre-owned luxury cars and software development services. These services cater to various digital transformation needs, encompassing data analytics, technology consulting, infrastructure, and security.
Its digital technology offerings span cloud-based services and IT consulting services like big data analytics, cloud architecture, data engineering, and IoT solutions. It also provides solution-based services such as business intelligence analytics, cloud development, data management, digital transformation, IoT development, and web development.
In the pre-owned luxury car retail segment, the company focuses on premium and high-end luxury cars, with an average sale price of ₹40.00 lakhs. Currently, its presence in the pre-owned value chain includes after-sales services and repairs, conducted through affiliated service centres. Additionally, the company assists clients in securing financial assistance from third-party financiers.
The company inaugurated its first showroom under the brand "Finecars" in August 2022 at Ambience Mall, Vasant Kunj, National Capital Region (NCR). Since launching its retail business in 2020, it has sold 100 pre-owned cars to 100 customers. It transitioned its business model from a pure commission-based approach to a buy-and-sell retail model in mid-2020 to enhance margins.
In its software development services, the company operates under a lien model, engaging staffing companies and freelance software developers on an on-call basis. It also outsources requirements to third-party software development companies.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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