Infibeam's Rs. 450-Crore IPO Gets Sebi Nod

It would become the first shopping based e-commerce firm to tap the IPO route. Gujarat-based Infibeam has filed the Draft Red Herring Prospectus (DRHP) with Sebi on June 30 for a public issue of its equity shares through which it aims to raise up to Rs. 450 crores.

Infibeam competes with Flipkart, Amazon, Snapdeal and others in the e-commerce space. The Securities and Exchange Board of India (Sebi) has cleared the proposed initial share sale and gave its final observations on the IPO on September 30.

In June, the markets watchdog had announced a new set of easier norms for listing of startup firms 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 such as Infibeam.com, Indent, BuildaBazaar, Incept and Picsquare. Last year, Sony Music had bought a 26 percent stake in Indent.

It has proposed to list its shares on the NSE and BSE. The issue is being managed by SBI Capital Markets, Elara Capital Plc, ICICI Securities and Kotak Mahindra Capital Company.

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

Under the public offer, at least 75 percent of shares will be allotted on a proportionate basis to Qualified Institutional Investors, while up to 60 percent of this portion can be given to anchor investors on a discretionary basis.

Besides, 5 percent of the Qualified Institutional Buyer (QIB) Portion (excluding the anchor investor portion) would be available for allocation on a proportionate basis to mutual funds only.