Infibeam IPO, India's first in the e-commerce sector, opened today for subscription. Infibeam, promoted by Ajit Mehta, Vishal Mehta, and Malav Mehta, has opted to raise Rs. 450cr directly from the primary market.
At the close of market, as per NSE data, the issue is subscribed 0.16x. For Qualified Institutional Buyers (QIBs), the number of shares offered are 93,75,000, out of which, bids have been received for 20,27,250 shares. Retail Individual Investors (RIIs) biddings was muted, with only 25,806 shares bid for out of 12,50,000 shares. Non Institutional Investors haven't shown much interest in the IPO either, with bids for 782 shares for the 18,75,000 shares being offered. Total Bids Received at Cut-off Price was 16,762 shares.
Infibeam is offering a fresh issue of ~1.04cr equity shares at a price band of Rs.360‐432. This values the company at ~Rs.2300cr at the upper price band, including ~Rs.450cr to be raised from fresh issue. Promoters holding will reduce from c56.63% to 45.61% post the IPO.
Infibeam operates the Infibeam BuildaBazaar (BaB) e‐commerce market place, which provides cloud‐based digital solution and value‐added services (VAS) to set up online store fronts for customers. BaB provides a comprehensive, multi‐channel, and multi‐screen VAS to merchants. Company also owns Infibeam.com, a multi‐category e‐retail website. Revenue for H1 FY16 was ~Rs.171cr, clocking ~31% CAGR over the past three years. As of Dec 31, 2015, the company had 48,724 registered merchants, at a CAGR of 273% during FY12‐15, in the BaB marketplace. Its e‐retail business includes more than 15 million SKUs across 40 product categories. The company has an
active user base of 7.8mn as of Dec 31, 2015, which clocked ~29% CAGR over the past three years.