On Day 2, Infibeam's IPO subscribed 63%

The share-sale programme of Infibeam, the first e-commerce firm to tap the initial public offering (IPO) route, was subscribed 63 per cent on the second day of the offer on Tuesday. The Rs 450-crore IPO received bids for 7.9 million shares against the total issue size of 12.5 million shares, data available with the NSE till 5 pm showed.

The portion set aside for qualified institutional buyers (QIBs) was subscribed 47 per cent and retail investors category saw 67 per cent subscription. Non-institutional investors pie was oversubscribed 1.41 times.

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The company has fixed the price band at Rs 360-432 per equity share for the IPO. The initial share-sale programme will conclude on Wednesday.

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

It competes with Flipkart, Amazon and Snapdeal, among others, in the e-commerce space. The company has proposed to list its shares on NSE and BSE.

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

Last week, the company said two bankers – ICICI Securities and Kotak Mahindra Capital – exited from its public issue.

However, the firm did not disclose any reason for their withdrawal, but reports suggest that this has happened because of differences over pricing and timing of the IPO.

Infibeam plans to utilise the IPO proceeds for setting up a cloud data centre and shifting and setting up a registered and corporate office, apart from 75 logistics centres, purchase of software and for other general corporate purposes.

So far this year, four firms – HealthCare Global Enterprises (HCG), Quick Heal Technologies, TeamLease Services and Precision Camshafts – have hit the Street, while the IPO of Bharat Wire Ropes is underway.