Infibeam launches India’s first e-commerce IPO

Infibeam is one of few start-ups who has decided to go ahead with IPO (Initial Public Offering) instead of knocking at the door of venture capitalists to raise funds. It is looking to raise INR 450 crore through the IPO and plans to use it to set up a cloud data centre and logistics centre across the country.

Infibeam was started in 2007 by Vishal Mehta, a Cornell and MIT Sloan alumnus, and has its headquarters in Ahmedabad, India. It was started with initial capital of INR 100-150 million and was initially launched as an automobile portal which later forayed into online retailing. Infibeam has also been credited with launching India’s first e-book reader ‘Pi’. Over time, Infibeam has positioned itself as an internet and e-commerce conglomerate which deals in softwares, internet services along with online retail.

Infibeam’s list of products and brands includes:

  • Online Retail – Infibeam.com
  • E-commerce Platform- buildabazaar, which was awarded ‘The Game Changing Idea of The Year’ Award by The Economic Times at ET RETAIL AWARD 2014. And it has presence in India and Middle East.
  • Music Streaming- Infibeam Digital Entertainment, started in 2012.

They also have Digital Marketing services, e-book readers: pi and pi2

Acquisitions till date:

  • Picsquare.com, a personalized photo printing website in 2008.
  • Odigma, a digital marketing company in 2012

Operational Revenue: INR 207.3 crore for the financial year ended March 31, 2014

Profit/Loss: INR 25.95 crore loss for the financial year ended March 31, 2014

Employees: ~1300

What should you know about the IPO?

IPO is looking to raise INR 450 Crores with price band of INR 360 to INR 420.

Day 1 Report: the 1st ever IPO by an e-commerce giant has received lukewarm response with only 0.21 times the subscription.

Issue Details:

Issue Open: Mar 21, 2016 – Mar 23, 2016
Issue Type: 100% Book Built Issue IPO
Face Value: INR 10 Per Equity Share
Issue Size: INR 450.00 Crore
Issue Price: INR 360 – INR 432 Per Equity Share
Market Lot and Minimum Order Quantity: 34 Shares
Listing At: BSE, NSE.

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