I-Flex Ipo Oversubscribed 1.1 Times

i-flex solutions' public issue, which is slated to close tomorrow, has thus far collected Rs 231.27 crore from subscriptions for 43.33 lakh shares, thereby oversubscribing the issue by 1.1 times. The company had on offer Rs 39.62 lakh shares which opened on June 5.

The issue has received 60 percent of subscriptions from institutional investors which is 1.1.5 times to 2 times oversubscribed. A small lot of 53,000 shares received a bid price of Rs 600 level, totalling Rs 3.18 crore, 2.5 lakh shares received a bid price of Rs 550, totalling to Rs 13.75 crore, 7.5 lakh shares received a bid price of Rs 540, amounting to Rs 40.50 crore. Thus, the company has so far received Rs 57.43 crore for 10.53 lakh shares. The remaining 32.8 lakh shares received a bid price of Rs 530, amounting to Rs 173.84 crore. The average bid price works out to Rs 534 per share.

The lead book runners to the issue were JM Morgan Stanley. The floor price of the issue was fixed at Rs 530 a share. The company is soliciting 100 per cent subscriptions through the book building route. The other lead managers to the issue were Kotak Mahindra and DSP Merrill Lynch. The company is aiming to mobilise a minimum of Rs 220 crore for its expansion plans.

i-flex is a company promoted by Citigroup and more than 60 per cent of its revenues comes from high-margin products business. The issue proceeds will be utilised to enhance delivery infrastructure by setting up development centres at Bangalore and Mumbai at a cost of Rs 170.62 crore. About Rs 50 crore will be utilised to increase its global marketing presence.