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    Infibeam lists at 6% premium over issue price of Rs 432

    Synopsis

    Incorporated in 2007, Infibeam has two major businesses — the BuildaBazaar (BaB) e-commerce marketplace (28 % revenue) and e-retail website Infibeam.com

    ET Online
    NEW DELHI: Infibeam Incorporation, the first e-commerce debutant on the Dalal Street, received a positive response from investors, as the stock got listed at Rs 458 on the BSE, a 6.01 per cent premium to its issue price of Rs 432.

    Within few minutes of trading, the stock had climbed to Rs 463.85 on BSE, up 7.73 per cent over its issue price. However, the scrip lost momentum and eventually settled the day at a discount of ​a 2.69 per cent at Rs 445.70.

    The Rs 450 crore IPO was the first primary market offering by an e-commerce company till date. The issue was open for direct subscription between March 21 and March 23 and was subscribed 1.1 times.

    Incorporated in 2007, Infibeam has two major businesses — the BuildaBazaar (BaB) e-commerce marketplace (28 per cent revenue) and e-retail website Infibeam.com (72 per cent revenue).

    While BaB offers cloud-based, modular and customisable digital solutions and other value-added services to enable merchants to set up online storefronts, Infibeam.com is a multi-category e-retailer.

    The key strengths of the company include its strong merchant base in BuildaBazaar and high growth the company recorded in the e-tail business. BuildaBazaar provides digital solutions to 48,724 merchants. It helps merchants to set up online storefronts at an average monthly realisation of Rs 1,650 per merchant. Infibeam.com, on the other hand, has 5,000 registered merchants. The company has 12 logistics centres across 11 cities.

    The penetration of internet users in India is at 19 per cent, which is lower than China's 46 per cent.

    The online shopper base is expected to improve from the present 35 million to 180 million by 2020, with increasing internet penetration. Some estimates peg the e-retail market size in India to grow to $44 billion (nearly 4 per cent of total retail) in 2020 from $7 billion in 2015 (1.2 per cent of total retail).



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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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