Monday 6 July 2015

Infibeam To Raise $71 Million In India’s First E-Commerce IPO Filing

Infibeam, the Ahmedabad-based eCommerce portal recently filed for an IPO earlier this week to raise about $71 million. Th filing revealed several other factors too, including Infibeam’s  incurred losses to the tune of Rs 25.95 crore for the financial year ended March 31, 2014, up from Rs 24.9 crore in the fiscal 2013 and Rs 10.8 crore in the fiscal 2012.
The company is looking to raise about $70 Million (₹450 crore) through IPO. It had filed draft papers with the Securities & Exchange Board of India (SEBI) and Draft Red Herring Prospectus which offers shares of Rs 10 each for cash. It has proposed to list its shares on the NSE and BSE. With this, Infibeam has become the first Indian e-commerce company to launch an IPO, a recognisable feat in itself.
Under this public offering, at least 75 per cent of shares would be allotted on a proportionate basis to Qualified Institutional Investors, while up to 60 per cent of this portion can be given to Anchor Investors on a discretionary basis.
It reported loss of around Rs. 25.95 crore in the financial year that ended in March 2014. In the fiscal year 2013, it reported loss of around 24.9 crore while in fiscal year 2012, it reported loss of 9.65 crore. Note that the loss reported is including its eCommerce portal, DIY eCommerce platform BuildABazaar and its other services.
With the amount raised by IPO, the company is planning to set up its cloud data centers. It is also planning to set up its own logistics service in order to get control over logistics and customer satisfaction. Currently, it has about 36 logistics centers in 12 cities, including 12 cities in India including Mumbai, Bengaluru, Delhi, Gurgaon, Kolkata, Hyderabad, Guwahati, Jaipur, Pune, Lucknow, Ahmedabad and Chennai.
It will spend Rs. 235.2 crore on setting up its own cloud infrastructure while to set up logistics centers across 75 locations, it will spend about Rs. 37.5 crores. It is also planning to introduce custom branded prepaid cards and .000 co-branded credit cards for online royalty points redemption.
The company has 63 million authorized shares of which 42.6 million shares have been issued. Its promoters owns 32.24% of the issued, subscribed and paid-up equity share capital prior to the issue. Founder of the company Vishal Mehta is the largest shared holder owning 14.09% shares of the pre-issue capital.
Here is the list, explaining shareholding of promoters and promoter groups.
Founded in 2007 by Vishal Mehta, Infibeam started as an online automobile retailer but then ventured out into selling products across categories such as mobiles, accessories, books, camera, watches, etc. It has more than 1300 employees in its offices around Ahmedabad, Mumbai, Delhi and Bangalore.
It had launched its own eBook reader named Infibeam Pi and its second-gen eBook reader Pi 2, much on the lines of U.S.-based Amazon. It also launched its SaaS DIY eCommerce portal, probably one of the first in the country. In 2012, it launched Infibeam Digital Entertainment (INDENT) and in 2013, it launched Infibeam Concert Entertainment Park Travel (INCEPT).
The company also owns the license of the generic top level domain (GTLD) ‘.ooo’ granted by Internet Corporation for Assigned Names and Numbers (ICANN). In 2014, it launched its .000 domain for trademark owners.
IPO markets have heated up as over 30 companies have planned to raise funds. The total reaches over Rs. 20,000 crore through public offers. The companies who have lined up for IPO includes big names like IndiGo, Cafe Coffee Day, GVK Airport, etc. In 2015, 8 companies have launched their IPOs so far and have collectively raised around Rs. 4,000 crore.

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