Infibeam’s IPO — a first for any Indian e-commerce brand, despite the slow and patchy start it got to, fared pretty well. And it actually went so well, that the IPO ended up being fully-subscribed, despite two of its four bank partners backing off from the IPO, at the penultimate moment.
First reports however, have now come in, telling us who actually subscribed to that IPO. And looks like the largest chunk of shares — 5% of the overall on offer — was taken by Mumbai based venture capital firm, Next Orbit Ventures, for a massive ₹115 crores. The amount has been invested from the first $140 million (Rs. 700 crore) fund constituted by the firm.
In an interview with the Economic Times, Ajay Jalan, founder & MD, Next Orbit Ventures said,
When other online-retail companies in the market are making losses, we are very confident about our investment on a company which is ready to IPO and will be making profits in next 6 months.
Out of all the share-buying offers received, high net-worth individuals and corporates mark up most of the bidding zone of the company. Their orders alone add up to 1.8 times the total number of shares reserved for them.
The share prices offered by Infibeam range from ₹360 to ₹462 a share (considered high by some investors).
Infibeam raised close to ₹450 crore ($80.84 million) at the top-end of its IPO. This was the company’s long-term aim which saw a bit of a hitch after the two banks withdrew their offers. The split, according to reports, was because of Infibeam’s somewhat high share prices in the first place. Apparently, investors believed that the price was too expensive for an IPO.
The company will be using up the IPO raised to set up a cloud data centre and shift and set up a registered and corporate office of the company. Other sectors the company will be utilizing the funds for, include setting up of 75 logistics centres, purchase of software and for other general corporate purposes.