Net Avenue Technologies IPO Sees Massive Subscription

Net Avenue Technologies IPO Sees Massive Subscription

Net Avenue Technologies IPO Sees Massive Subscription

Net Avenue Technologies’ initial public offering (IPO), which opened on November 30, witnessed an overwhelming response, being subscribed over 511.10 times on the final day of bidding. The public issue saw a massive subscription across all categories: 721.68 times in the retail category, 61.99 times in the Qualified Institutional Buyers (QIB) category, and 616.24 times in the Non-Institutional Investors (NII) category, according to data from chittorgarh.com.

IPO Subscription Details

• On the third day, the IPO received 1,93,81,04,000 applications against the 37,92,000 shares offered.
• By December 1, the subscription in the retail category was at 89.06 times, QIB at 0.41 times, and NII at 46.17 times.
• On the first day of bidding, the SME issue was subscribed over 14 times. The retail portion was booked 23.37 times, NII was 10.74 times subscribed, while QIB remained unsubscribed.

IPO Structure and Pricing

• Net Avenue Technologies IPO comprised a public issue of 5,696,000 equity shares.
• The IPO allocated 1,896,000 shares for retail investors, 1,080,000 shares for qualified institutional buyers, and 816,000 shares for non-institutional investors.
• The price band was set at ₹16 to ₹18 per share, with a face value of ₹1 per share, aggregating up to ₹10.25 crore.
• The issue reserved not more than 50% for QIB, not less than 30% for retail, and not less than 15% for NII.

Funds Raised and Utilization Plans

• The issue raised around ₹2.91 crore from anchor investors on November 29, 2023.
• Net proceeds from the issue are intended for funding customer acquisition, working capital requirements, general corporate purposes, and meeting issue expenses.
• Shreni Shares Limited is the book running lead manager for the IPO.
• Bigshare Services Pvt Ltd is the registrar for the issue.

Grey Market Performance

• The IPO’s grey market premium (GMP) today is +11, indicating shares trading at a premium of ₹11 in the grey market.
• Based on the upper end of the IPO price band and current GMP, the estimated listing price for Net Avenue shares is suggested at ₹29 apiece, 61% higher than the IPO price of ₹18.

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