Affle India Shares List at 25% Premium Over Issue Price
Affle India Ltd made a stellar debut on stock exchanges on Thursday, as the stock listed at Rs 929.90, a premium of nearly 25% over the issue price of Rs 745.
Mobile marketing firm Affle India’s Rs 459-crore initial public offering (IPO) was open for subscription from 29 July to 31 July at a price band of Rs 740-745 per share. The issue got subscribed by 86.49 times, getting a good response from investors across categories. The retail investors’ category posted a subscription figure of 10.96 times, the reserved portion of qualified institutional buyers was subscribed by 55.3 times, while non-institutional investor category was subscribed 199 times.
Brokerages were also expecting 20-25% upside in the stock at the time of listing. According to various media reports, the grey market premium to Affle India’s IPO price was also around Rs 175-200 per share.
“Affle is expected to list at 20-25% premium to issue price. We have positive outlook, as the company has high growth market with substantial barriers to entry,” Astha Jain, senior research analyst at Hem Securities, had told Moneycontrol earlier.
Jain said Affle India with its profitable, low-cost business model built on an asset light, automated and scalable platform is well placed to tap opportunities in the sector.
Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, had also said that the listing should see a good premium but would also depend on current market conditions.
Affle India is a global technology company with two key business segments – consumer platform and enterprise platform. The consumer platform aims to enhance returns on marketing spend through delivering contextual mobile advertisements and reducing digital ad fraud. The enterprise platform, meanwhile, provides end-to-end solutions for enterprises to enhance their engagement with mobile users.
The company had said it planned to use the money raised through the IPO for funding working capital requirements and general corporate purposes.