Earlier this week, Infibeam’s IPO had taken a rather hiccup-y turn. This was a due to two consulting banks withdrawing their offer, leaving the company hanging with just two other banks. Yesterday however, exchange data showed that Infibeam’s initial public offering has been fully subscribed ahead of books closing later on Wednesday.
The two banks which had withdrawn their offer, citing concerns over pricing and the timing of the issue, were Kotak Mahindra Capital and ICICI Securities leaving the company with just SBI Capital Markets Ltd and Elara Capital (India) Pvt. Ltd as the only two remaining bankers.
Infibeam Incorporation Ltd, the Gujarat-based e-commerce startup involved in online retailing, e-commerce software and Internet services has taken up recent news space because of its achievement in becoming the first Indian e-commerce portal to going for an IPO.
The company, reports from the National Stock Exchange and BSE Ltd show, has received orders for about 12.5 million shares on offer as of 15:24 India time. Apparently, 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 Rs. 360 to Rs. 462 a share (considered high by some investors). The offer will close later today.
The company aims to raise up to Rs 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 reportedly 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 finds for include setting up of 75 logistics centres, purchase of software and for other general corporate purposes.