Infibeam IPO Subscribed 0.21 times On Day 1

Infibeam Incorporation Ltd, the first Indian e-commerce firm to launch an initial public offering (IPO), saw its issue being subscribed 0.21 times on the opening day of the share sale. According to data from BSE, the qualified institutional buyers portion was subscribed 0.22 times, with all the bids coming in from foreign institutional investors, while the retail portion was subscribed 0.17 times.

The Ahmedabad-based e-tailer, which aims to raise Rs.450 crore from the share sale, has already run into problems with two of the four domestic investment banks opting out on concerns over pricing and timing of the issue. Kotak Mahindra Capital and ICICI Securities withdrew as bankers to the issue. SBI Capital Markets Ltd and Elara Capital (India) Pvt. Ltd are the two bankers managing the offer currently.

Extra info:
  • Market regulator Securities and Exchange Board of India (Sebi) introduced the concept of anchor investors in a 
  • public issue in 2009 with a view to having a set of committed investors anchoring a transaction notwithstanding the market conditions.
  • According to clause 10(h) of the Sebi ICDR (Issue of Capital and Disclosure Requirement) Rules, if the price fixed as a result of book-building is higher than the price at which the allocation is made to an anchor investor, he shall bring in the additional amount.
  • Infibeam, founded by former Amazon executive Vishal Mehta, turned profitable in the first six months of 2015-16.

So lets do:
  • Who is the Infibeam founder?
  • Who is the Chairman of SEBi?

Source – The Livemint


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