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Ecommerce firm, Infibeam is currently holding an online Sale but is expected to create an even Bigger Bang when it enlists as the 1st ecommerce IPO in the country. Infibeam expects to raise Rs. 450 crore from the Initial Public Offering.
- The Price band per share has been kept at Rs. 360-432
- The public issue will close on 23rd March
The generated funds are expected to be utilised to:
- Set up a cloud data centre
- Move to a swanky new office address
- Set up 75 Logistics centres
- Buy latest software
Infibeam had applied for the IPO on 30th June 2015 and it was accepted in October, by the Securities and Exchange Board of India (SEBI) . Apart from the ecommerce marketplace ‘infibeam.com’, Infibeam Inc. generates sufficient money from its domain business ‘.000’ and its ecommerce service provider ‘Buildabazaar.’
Ecommerce IPO’s come with risks!
We heard that Flipkart was planning an IPO for the last couple of years, but that has been put on the back burner for now at least. So why are ecommerce IPO’s so tricky?
“It is a high-risk, high-reward situation, and investors with deep pockets and willingness to take risk should invest in such companies. Unless e-commerce companies have a sustainable revenue-generating model, gaining success will be difficult especially when solely relying on heavy discounting or predatory pricing approach. One has to understand that it took years for large, present-day e-commerce companies to reach where they are today. Not everyone can become that,” said Prithvi Haldea, founder chairman of Prime Database Group
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