Infibeam seeks up to Rs450 crore in e-commerce sector’s first IPO

The e-commerce firm set a price range of Rs360 to Rs432 per share for an IPO of stock worth up to about Rs450 crore

Mumbai: Indian e-commerce firm Infibeam Inc on Tuesday set a price range of Rs360 to Rs432 per share for an initial public offering of stock worth up to about Rs450 crore ($67 million).

The company, one of India’s smaller e-commerce operators but the first in the sector to announce plans to go public, said in a filing that the subscription period for the offer will run from 21 March until 23 March.

Trading is set to begin on or around 4 April, Infibeam said. It wasn’t immediately how much the firm’s total valuation would be according to the IPO price range.

Although a comparatively small IPO, Infibeam’s debut is widely expected to serve as a proxy for stock market investors’ appetite for potential future offerings in the e-commerce sector, analysts and bankers have said. Reuters

Topics: Infibeam, Infibeam IPO, E-commerce, Markets, Initial Public Offering

Infibeam to hit markets on March 21, mop-up Rs 450 crore via IPO

Started in 2007, Infibeam runs several e-commerce services like Infibeam.com, BuildaBazaar, Incept and Picsquare.

Online shopping portal Infibeam Incorporation will hit the capital markets on March 21 to mop-up Rs 450 crore through an initial share plan, becoming the first e-commerce firm to tap the IPO route.
The company has fixed the price band at Rs 360-432 per equity share for the IPO.

The initial public offer (IPO) will conclude on March 23, as per the latest update available with capital markets regulator Securities and Exchange Board of India (Sebi).

As per Draft Red Herring Prospectus, Gujarat-based Infibeam plans to come out with public issue of equity shares worth up to Rs 450 crore.

Infibeam competes with Flipkart, Amazon, Snapdeal and others in the e-commerce space.
The capital markets watchdog had already announced a new set of easier norms for listing of startups on a separate platform of stock exchanges. However, Infibeam has decided to go for listing on the main board.

Started in 2007, Infibeam runs several e-commerce services like Infibeam.com, BuildaBazaar, Incept and Picsquare.

It has proposed to list its shares on the NSE and BSE.

The issue is being managed by SBI Capital Markets and Elara Capital India.

Infibeam plans to utilise the IPO proceeds towards setting up of cloud data centre and shifting and setting up of registered and corporate office of the company.

Besides, the funds will be used for setting up of 75 logistics centres, purchase of software and for other general corporate purposes.

Apart from Infibeam, two companies, HealthCare Global Enterprises (HCG) and Bharat Wire Ropes, will hit the capital markets this week.

Besides, three firms – Quick Heal Technologies, TeamLease Services and Precision Camshafts – have already hit the Dalal Street so far this year.