On Day 1, Infibeam offer subscribed 20%

The Rs 450-crore initial public offering (IPO) of e-commerce company Infibeam Incorporation garnered 20 per cent subscription on Monday, the first day of the issue. The 12.5-million share offering received bids for nearly 2.55 million shares, data provided by exchanges showed. Around 75 per cent of the shares are reserved for institutional investors, 15 per cent for high net worth individuals, and the remaining for retail investors. Unlike some of the recent IPOs, Infibeam has decided not to allot any shares to anchor investors.

The company is offering fresh shares worth nearly Rs 450 crore in the IPO in a price range of Rs 360-432. Infibeam will utilise Rs 232 crore on a cloud data centre and corporate office, around Rs 37 crore will be spent on setting up logistics centers and Rs 67 crore for purchasing software.

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“At the upper price-band, Infibeam is valued at EV/revenue (enterprise-value-to-revenue multiple) of 6.2 times (FY15 revenue). Average of peers including global e-tail (Amazon/Alibaba/eBay/Rakuten), e-commerce solution providers (Shopify, GoDaddy) and domestic Internet peers (Info Edge, Justdial) are at 4 times EV/revenue,” said Reliance Securities in a note.

SBI Capital Markets and Elara Capital are managing the IPO. The issue closes on Wednesday.