Stock Market

Infibeam’s Rs 450-cr IPO subscribed 63% on second day of offer

Infibeams Rs 450-cr IPO subscribed 63% on second day of offer

The share-sale programme of Infibeam Incorporation, the first e-commerce firm to tap the IPO route, was subscribed 63 per cent on the second day of the offer today.

The Rs 450-crore IPO received bids for 79,01,634 shares against the total issue size of 1,25,00,000 shares, data available with the NSE till 1700 hours showed.

The portion set aside for qualified institutional buyers (QIBs) was subscribed 47 per cent and retail investors category saw 67 per cent subscription.

Non-institutional investors pie was oversubscribed 1.41 times.

The company has fixed the price band at Rs 360-432 per equity share for the initial public offer (IPO). The initial share-sale programme will conclude tomorrow.

Started in 2007, Infibeam runs several e-commerce services like, BuildaBazaar, Incept and Picsquare.

Infibeam competes with Flipkart, Amazon and Snapdeal, among others, in the e-commerce space.

The company has proposed to list its shares on NSE and BSE.

The issue is being managed by SBI Capital Markets and Elara Capital India.

Last week, the company said two bankers — ICICI Securities and Kotak Mahindra Capital — exited from its public issue.

However, the firm did not disclose any reason for their withdrawal, but reports suggest that this has happened over differences on pricing and timing of the IPO.

Infibeam plans to utilise the IPO proceeds towards setting up of a cloud data centre and shifting and setting up of registered and corporate office of the company.

In addition, the funds will be used for setting up of 75 logistics centres, purchase of software and for other general corporate purposes.

So far this year, four firms — HealthCare Global Enterprises (HCG), Quick Heal Technologies, TeamLease Services and Precision Camshafts — have hit the Dalal Street, while the IPO of Bharat Wire Ropes is underway.