Delhi-based cloud firm E2E Networks Ltd, backed by Blume Venture Advisors, saw its initial public offering cross the one-third mark on its first day. After the IPO, the company aims to list on the National Stock Exchange’s Emerge platform for small and medium enterprises.
The IPO received bids for 1.47 million shares against the 3.86 million shares on offer. The book, which does not have an anchor allotment, was subscribed 38% at the end of day one, stock exchange data showed.
Half the IPO is reserved for non-institutional category comprising of corporate bodies and very wealthy individuals. The rest half is for retail investors, said Holani Consultants Pvt. Ltd, the merchant banker managing the IPO. There’s no reservation for institutional buyers, who did not bid for a single share on day one.
The non-institutional book received bids for 988,000 shares against 1.93 million shares reserved for the category.
Retail investors bid for 484,000 shares against 1.93 million shares reserved for them.
E2E, which is promoted by Tarun Dua and wife Srishti Baweja, is eyeing a valuation of $12.17 million (Rs 81.19 crore) through the IPO.
The public issue, which closes on Monday, comprises fresh issue of 2.75 million shares worth Rs 15.67 crore besides an offer for sale of 1.10 million shares. The IPO is a fixed-price issue with shares offered at Rs 57 apiece.
Blume Venture Advisors is selling about 743,000 shares, or nearly one-third of its stake, through the IPO. VCCircle had reported that tech-focussed early-stage investment firm Blume Venture is poised to make stellar returns from its partial exit in E2E through the public offering.
Promoters and key company individuals are also selling small chunks of their holdings via the IPO.
The cloud services market continues to rapidly grow in India, as cloud spending is seen as reaching almost $2 billion by the end of 2020, the firm’s IPO filing noted.
E2E reported a 37.5% jump in revenues from operations to Rs 29.3 crore for the year ended March 2017, from Rs 21.4 crore a year ago. The increase was mainly due to expansion of its business operations.
Nearly eight years on, Blume is among the most prolific investors in the Indian startup ecosystem with a portfolio of more than 100 firms and 80 active startups. These include micro-delivery startup Milkbasket, cab aggregator TaxiForSure (which was acquired by Ola), and cloud telephony firm Exotel.
The venture capital firm has made 15 exits (full and partial) primarily through mergers and acquisitions (M&As), according to VCCEdge, the data and research platform of News Corp VCCircle.
Its major exits through M&As involved cab-hailing company Ola buying TaxiForSure, and Twitter acquiring ZipDial, a company engaged in the business of missed calls.