Infibeam Incorporation files draft prospectus for IPO

capital market | Mumbai |

Plans to raise Rs 450 crore through fresh issue of shares

Indian e-retailer Infibeam Incorporation filed a draft prospectus with the Securities and Exchange Board of India (Sebi) yesterday, 30 June 2015, for an initial public offer (IPO) to raise Rs 450 crore through fresh issue of shares. The face value for the equity shares is Rs 10 per share.

Infibeam said that it shall allot at least 75% of the issue to QIBs on a proportionate basis, provided that it may allocate up to 60% of the QIB portion to anchor investors on a discretionary basis. The company added that its promoters, promoter group, group companies and associates will not participate in the issue.

The equity shares offered through the IPO are proposed to be listed on the BSE and the National Stock Exchange.

Infibeam proposes to utilise the net proceeds from the issue towards funding of projects viz. setting up of cloud data centre and purchase of property for shifting and setting up of registered and corporate offices of the company. The company also proposes setting up of 75 logistic centres. It also intends to utilise the proceeds towards purchase of software and general corporate expenses.

Infibeam is one of India's leading e-commerce companies focused on developing an integrated and synergistic e-commerce business model. The company owns and operates the Infibeam Builda Bazaar (BaB) e-commerce marketplace, which provides cloud-based, modular and customizable digital solutions and other value added services to enable merchants to set up online storefronts.

On consolidated basis, Infibeam Incorporation reported net loss of Rs 9.64 crore on total revenue of Rs 218.62 crore for the nine months ended 31 December 2014. The company reported net loss of Rs 25.94 crore on total revenue of Rs 209.05 crore for the fiscal 2014. Infibeam said in its draft prospectus that it has incurred significant losses in the past and may continue to incur significant losses in the future.

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