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Infibeam's $80 Million IPO Fully Subscribed

Infibeam's $80 Million IPO Fully Subscribed

By Reuters | Updated: 23 March 2016 18:48 IST

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Indian online retailer Infibeam Incorporation's $80 million initial public offering (IPO) attracted thin demand from institutional investors, just selling the total number of shares on offer in the country's first e-commerce listing.

The company, which makes money through its e-commerce portal and also license technology for bricks-and-mortar chains to set up their own sales websites, received orders for about 13.8 million shares against the 12.5 million on offer, stock exchange data showed.

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Demand for IPOs in India typically far exceed the supply, and though high net-worth individuals and corporates were active bidders with orders worth 2.2 times the total number of shares reserved for them, institutional investors bid for less than their allocated quota.

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

Flipkart and Snapdeal, India's two biggest e-commerce operators, have yet to make formal announcements on plans to go public, but bankers and insiders have said that both are considering a New York listing within the next two years.

Infibeam is aiming to raise up to Rs. 540 crores ($80.84 million), at the top end of a price band of Rs. 360 to Rs. 462 per share.

© Thomson Reuters 2016

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