The initial public offer of mobile marketing firm Affle India has received overwhelming response from investors on July 31, the last day for subscription.
The Rs 459-crore public issue has received bids for 29.21 crore equity shares against IPO size of 33.78 lakh shares (excluding anchor investors' book) as per data available on exchanges.
The initial public offer has been oversubscribed 86.49 times.
The reserved portion of qualified institutional investors was subscribed 55.3 times and non-institutional investors 199 times while retail portion saw 10.96 times subscription.
The IPO consists of a fresh issue of Rs 90 crore and an offer for sale of 49,53,020 equity shares, including anchor portion of 27,72,483 equity shares. The price range for the public offer, which opened for bidding on July 29, been fixed at Rs 740-745 per share.
Affle India, on July 26, already raised about Rs 206.55 crore from 15 anchor investors.
"We like Affle's unique business model with asset-light growth strategies and debt-free status. Considering Affle's presence in the high growth advertising market globally as well as India, we believe Affle is well placed in the mobile-only advertising approach to tap the growth. It has a globally well-diversified clientele base in which nearly 70 percent of the revenue comes from global and the rest from domestic markets," Mehta Equities said.
The brokerage further said on valuation parse at higher price band of Rs 745 per share Affle commands Rs 1,899 crore market cap with P/E of 37x on its FY19 earnings and higher ROCE due to high growth business model which proposes a long term investment opportunity.
Looking at its high growth market with substantial barriers to entry, low-cost business model built on an asset light, automated and scalable business platform we are optimistic and investors may consider applying in the IPO for both listing as well as long term investment, the brokerage advised.
Affle India is a decade old global technology company with a proprietary consumer intelligence platform that delivers consumer acquisitions, engagements and transactions through relevant mobile advertising. This platform aims to enhance returns on marketing spend through delivering contextual mobile ads and reducing digital ad fraud, while proactively addressing consumer privacy expectations. This platform is used by (B2C) companies across industries, including e-commerce, fin-tech, telecom, media, retail and FMCG companies, both directly and indirectly through their advertising agencies.
Microsoft has a 6.48 percent stake in the Singapore based Affle Holdings. Affle, as at FY18 on a proforma basis, had approximately 1.18 billion consumer profiles and it accumulated over 140 billion data points over the preceding 12 months, which power its prediction and recommendation algorithm.
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