The initial public offer of Net Avenue Technologies was subscribed over 500 times, making it the second highest in terms of bids received this year. Kahan Packaging IPO, which hit the Street earlier this year, received subscription of over 700 times.
The offer of Net Avenue Tech is a completely a fresh equity issue of up to 56.96 lakh equity shares. The company plans to raise Rs 10.25 crore through the IPO.
The massive demand was led by retail investors, whose category was subscribed 721 times, while that of non-institutional investors was subscribed 616 times. The part reserved for institutional investors was subscribed 62 times. The issue closed on December 4.
About 50% of the offer was reserved for qualified institutional investors, 15% for non-institutional investors, and the rest 35% for retail investors.
The issue was priced in the range of Rs 16-18 apiece, and investors can bid for 8,000 shares in 1 lot. In the grey market, the company’s shares are in heavy demand, commanding a GMP of Rs 15.
If the trends sustain, the shares will likely double on the listing day, becoming yet another SME IPO to deliver multibagger returns to investors on the first day itself.
Net proceeds from the issue will be used for customer acquisition, funding working capital requirements, and other general corporate purposes.
The company is engaged in online digital direct-to-consumer business for Indian ethnic wear and accessories. It also has a presence in international cross-border e-commerce direct-to-consumer for its products. The product range includes Indian ethnic wear and accessories for women, men, teens, and kids.
Shreni Shares is acting as the lead manager to the issue and Bigshare Services is the registrar.
The allotment for the IPO will be made on December 7 and the tentative listing date is around December 12.
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