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Infibeam Set To Raise $69 Million In IPO After Approval From SEBI

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Gujarat based e-commerce player, InfiBeam has got the approval from capital market regulatory body, Security and Exchange Board of India to raise an IPO worth 450 crore INR. This makes it the first e-commerce company to go public. InfiBeam had filed the draft red herring prospectus (DRHP) with Sebi on June 30 this year to issue public shares.

The company plans to utilize the IPO funds to set up new cloud based data centres and move its registered corporate office to a new office in Gujarat International Finance Tec-City (GIFT), Gandhinagar. It also aims to create an ITeS-enabled ecosystem for virtual retail using .OOO domain and its BuildaBazaar marketplace.

The new technologically advanced data centres will help the company to have more control over proprietary technology and customer information, better manage customer and market analytics, ensure superior confidentiality and security protection and also provide disaster recovery support infrastructure.

According to MD of InfiBeam, Vishal Mehta, Infibeam plans to spend Rs 235 crore for setting up data centres, Rs 37 crore for logistic centres and another Rs 67 crore for purchase of software. The rest of the funds will be used for general corporate purposes.

Vishal Mehta said –

We will launch the IPO in the next few months, after consulting with our merchant bankers.

The merchant bankers include SBI Capital Markets, ICICI Securities, Kotak Mahindra Capital Co and Elara Capital.

Founded in 2007 by Vishal Mehta, Sachin Dalal and Neeru Sharma, InfiBeam has always made its intentions quite clear in offering itself more than just an e commerce company, offering its online platform as a cloud-based eCommerce platform service in B2C and B2B verticals.

Through its Build A Bazaar platform, it enables the retailers to set up their business online by setting their branded online store in minutes. Launched in 2011-12, the platform has 33489 registered merchants as of March 31, 2015 including startups, SMEs and various brands such as Crossword, Airtel and MTS.

In this way, unlike other eCommerce players who are burning cash like anything through sky-high valuations and funding rounds, InfiBeam has diversified its offerings into other areas where other players are not present. Through IPO, now  it has also adopted an alternate route of using investor money rather than going for private equities and venture capital funds.

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