Why Infibeam Decided to Hit the Markets

Infibeam becomes the first e-commerce firm to take the IPO or initial public offering route to raise money.

Why Infibeam decided to take the IPO route when others have so far chosen to stay away, the company's management explained to NDTV.
--------------------------------------------------------------------------------------------------------------------------
Advanced Price Comparison App for Online Shopping ->Download "Approprice" Mobile App Today
Download from Google Play
#appropriceworld #pricecomparkiyakya  #smartshopper #paisebachao  #excellentmobileapps #Flipkart #Snapdeal #Amazon #Ebay #Shopping
-----------------------------------------------------------------------------------------------------------------------



"It was a board decision, thought it was the right time. We have been in the business for the last seven years and we think it is in the interest of our shareholders," Vishal Mehta, managing director, Infibeam told NDTV. The company plans to raise Rs 450 crore through the IPO.

On Wednesday, Infibeam received market regulator Sebi or the Securities and Exchange Board of India nod to go ahead with the IPO. The company had filed for the IPO in June.

"There are multiple ways for any company in the technology space to raise capital...so after evaluating all the different options and opportunities that were suggested, we narrowed down and zeroed in on filing for an IPO," Mr Mehta said. (Watch the full interview)

Infibeam competes with the likes of Flipkart, Amazon, Snapdeal and others from the e-commerce sector.

Of the Rs 450 crore, the company plans to raise - Rs 235 odd crore will go into cloud based infrastructure including corporate offices, Rs 37.5 crore will be spent on expanding last mile logistic centres, expanding 75 last mile logistic centres from current levels, Rs 67 odd crore will be used on mobile ad servers (software purchases), and the balance will go into general corporate purpose- Mr Mehta explained.

On the timeline of the IPO, Mr Mehta said, "It will be a function of how the markets work out and also the advice from our merchant bankers."

Started in 2007, Infibeam runs several e-commerce services such as Infibeam.com, Indent, BuildaBazaar, Incept and Picsquare. Last year, Sony Music had bought a 26 percent stake in Indent.
Infibeam has proposed to list its shares on the NSE and BSE. The issue is being managed by SBI Capital Markets, Elara Capital Plc, ICICI Securities and Kotak Mahindra Capital Company.