Infibeam debuts on stock exchanges

The public issue of the company was subscribed 1.11 times

Shares of Infibeam Incorporation Ltd, which debuted on the stock exchanges on Monday, ended the first session with marginal gains. The company is being touted as the first e-commerce company to list on stock exchanges in India.

On Bombay Stock Exchange, the shares opened at Rs 458 and touched a high of Rs 466.90 during intra-day trades. They, however, could not sustain the levels and fell to a low of Rs 439.90, before closing at Rs 445.70, a mere 3.17 per cent premium compared to the issue price of Rs 432.

As per Monday’s closing price, the market capitalisation of the company is pegged at Rs 2,366.28 crore.

On the National Stock Exchange (NSE), the shares closed at Rs 445.55, after touching an intra-day high and low of Rs 467 and Rs 440.25, respectively.

The public issue of the Ahmedabad-based company, which closed on March 23, was subscribed 1.11 times with the institutional portion remaining undersubscribed, according to NSE data.

While the institutional segment was subscribed only 86 per cent, the portions reserved for retail and high-net worth individuals were subscribed 1.31 times and 2.23 times, respectively. The company had set a price band of Rs 360 to Rs 432 for the initial public offer (IPO).

Incidentally, the issue has faced headwinds with two merchant bankers, Kotak Mahindra Capital and ICICI Securities, withdrawing from the IPO, which was left for SBI Capital Markets and Elara Capital to manage.

According to the draft offer document of the company, it turned profitable in the first six months of the current financial year after posting a loss in the previous financial years.