With the primary market heating up, e-commerce industry is also joining the band wagon on Dalal Street. Infibeam’s IPO, the first in the ecomm space, will open for subscription on March 21-23. The company is planning to raise Rs 450 crore, with issue priced at Rs 360-432 per share.
While a few are still debating on its valuations, ICICI Securities and Kotak Mahindra Capital have already dropped out from handling the issue. Reports suggested this has happened over differences about pricing and timing of the IPO.
Promoters of the company include Ajit Mehta, Vishal Mehta, Malav Mehta and Jayshree Mehta.
The Gujarat-based company, which operates BuildaBazaar and multi-category e-retail website Infibeam.com, offers cloud-based, modular, customizable and scalable technology platform as well as e-commerce infrastructure and logistics support for merchants, products and services.
Here are 6 things that an investor needs to know about Infibeam:
#1. The company proposes to utilise the net proceeds for:
a) Setting up of cloud data centre and purchase of property for shifting and setting up of registered and corporate office of the company
b) Setting up of 75 logistics centres
c) Purchase of software
d) General corporate purposes
#2. Earnings per share (EPS) was negative for the company in FY15. Losses in FY14 decreased by 62.29 percent to Rs 9.78 crore from Rs 25.94 crore in FY15.
#3. However, the company turned profitable in 6 months of FY16. Profit before tax in the six months ended September 30, 2015 was Rs 6.2 crore. Total consolidated revenue was Rs 174.62 crore in six months of FY16.
“Revenue from sale of products (traded) and sale of services increased relatively in the six months ended September 30, 2015, as business on our Infibeam.com e-retail site as well as BaB marketplace and other e-commerce solutions provided on our integrated technology platform increased,” the company said in its red herring prospectus.
#4. In the six months of FY16, total expenditure was Rs 168.40 crore or 96.44 percent of its total income in the period. In FY15, total expenditure was Rs 305 crore representing 103.31 percent of total income.
#5. As of first six months of FY16, the company has total long-term loans amounting to Rs 2 crore.
#6. On a standalone basis, it has a reserve and surplus of Rs 236.2 crore till September 2015. However, it has Rs 229.67 crore lend as long-term loans and advances.
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