Loyalty and rewards solutions provider Novus Loyalty's initial share sale was fully subscribed at 1.06 times on March 19, the third day of bidding, backed by decent response from all categories of investors.
The company tapped capital markets to raise Rs 60.15 crore via initial public offering (IPO) of 41.2 lakh shares at the upper end of price band of Rs 139-146 per share. The IPO is a combination of fresh issuance of 33 lakh shares worth Rs 48.18 crore, and an offer-for-sale of 8.2 lakh shares valued at Rs 11.97 crore.
Deepak Tomar, and Sweta Singh will be selling shareholders in the offer-for-sale. The IPO will remain open till March 20.
Investors bid 31.66 lakh shares against offer size of 29.9 lakh shares via 959 applications with retail investors being at the forefront with their portion being subscribed 1.38 times. The parts set aside for qualified institutional buyers, and non-institutional investors were booked 89 percent, and 70 percent, respectively.
Novus Loyalty has already raised Rs 16.5 crore by issuing 11.3 lakh shares to eight anchor investors on March 16 including Bengal Finance, PSEB Alpha Fund, Viney Growth Fund, Vikasa India, and Paradise Moon Investment Fund.
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The company intends to spend Rs 13 crore of proceeds from fresh issue for upgrading existing products and development of new products, and Rs 9.6 crore for business development and marketing activities including manpower hiring.
Further, the balance funds will be utilised for general corporate purposes and unidentified inorganic acquisition.
The IPO share allotment will be finalised by March 23, while Novus Loyalty shares will be available for trading on the BSE SME effective March 25.
Novus Loyalty provides customisable and ready-to-use program models, including point-based rewards, event-triggered campaigns, cashback systems, purchase-linked promotions, and digital vouchers for several industries such as fintech, e-commerce, software, finance, banking, FMCG and real estate.
Smart Horizon Capital Advisors is acting as the book running lead manager for the Novus Loyalty IPO.
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