Net Avenue Technologies’ initial public offering (IPO), which commenced on November 30, garnered extraordinary investor interest, closing with a subscription rate of over 511.10 times on the last day of bidding. The breakdown reveals a substantial appetite across investor categories, with retail subscriptions at 721.68 times, QIB at 61.99 times, and NII at an impressive 616.24 times, based on data from chittorgarh.com.
The overwhelming response resulted in a staggering 1,93,81,04,000 applications against a modest offering of 37,92,000 shares on the third day of the IPO. This fervent demand was reflected in specific categories, with the retail segment subscribing 89.06 times, QIB at 0.41 times, and NII at 46.17 times by December 1, according to data sourced from Chittorgarh.com.
The journey of Net Avenue Technologies IPO began on a robust note, witnessing a subscription rate of over 14 times on the first day. Noteworthy figures include the retail portion being booked 23.37 times, NII at 10.74 times, and QIB remaining unsubscribed on the initial day.
Breaking down the specifics of the Net Avenue Technologies IPO, it comprises a public issue of 5,696,000 equity shares. The allotment includes 1,896,000 shares for retail investors, 1,080,000 for qualified institutional buyers, and 816,000 for non-institutional investors. The price band has been set at ₹16 to ₹18 per share, with a face value of ₹1 per share. The total issue size stands at 5,696,000 shares, aggregating up to ₹10.25 crore.
The allocation strategy entails not more than 50% of the offer being reserved for QIB, a minimum of 30% for the retail portion, and a minimum of 15% for NII (HNI). Notably, the issue secured ₹2.91 crore from anchor investors on November 29, 2023.
Net Avenue Technologies outlines its intention to utilize the net proceeds from the IPO for various purposes, including funding customer acquisition through marketing and awareness initiatives, addressing working capital requirements, fulfilling general corporate needs, and covering the expenses associated with the issue.
Managing the IPO proceedings, Shreni Shares Limited acts as the book running lead manager, while Bigshare Services Pvt Ltd takes on the role of the registrar for the issue.
In terms of the grey market scenario, the Grey Market Premium (GMP) for Net Avenue IPO currently stands at +11, indicating a premium of ₹11 in the grey market, as reported by investorgain.com. This signifies the willingness of investors to pay more than the issue price for Net Avenue shares.
Taking into consideration the upper end of the IPO price band and the current GMP, the estimated listing price for Net Avenue shares is projected at ₹29 apiece. This reflects a significant 61% increase over the IPO price of ₹18, underscoring the strong investor confidence and anticipation surrounding the listing. The “Grey market premium” serves as a valuable indicator of investors’ readiness to pay a premium for shares, highlighting the optimistic sentiment prevailing in the market.
