Infibeam Incorporation Limited had tapped the capital markets with its fresh issue to raise Rs 450 crs in a price band of Rs 360-432. The issue had reservations of 75% for QIB’s, 15% for HNI’s and 10% for retail. The QIB portion is mandatory and is not subject to any spill over. The issue received bids for shares at the top end of the band and was just about subscribed because the shares would be allotted at Rs 432. The exchange filing assumes the quantity of shares at the lower end of the price band and based on that the subscription in the QIB category was 0.86 times.

The startling fact was that no a single share was bid for by any domestic mutual fund and this at a time when the mutual fund industry has received record inflows in the calendar year 2015. One wonders whether the e-commerce story is all over and whether this is the beginning of the decline of this sector where higher burning of cash or greater losses ensured higher valuation. One can be sure that with one round of downgrading in valuations by a foreign brokerage of the e-commerce sector will see many more in the near future, once Infibeam becomes listed. Post listing the veil of secrecy and mystery surrounding e-commerce will be over as being a listed player transparency will have to be maintained.

Details of subscription are given below: –