Esconet Technologies off to a flyer, lists at 245% premium to IPO price

Esconet Technologies IPO: Ahead of the listing, the shares were commanding a 119 percent premium in the grey market

Esconet Technologies made an impressive debut, listing at a 245.2 percent premium over the IPO price on February 23. The stock opened at Rs 290 on the NSE SME platform against the issue price of Rs 84 after the IPO was subscribed 500 times over.

The listing was better than expected. The share of the IT infrastructure solutions firm was commanding a 119 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the grey market premium to get an idea of the listing price.

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The offer was subscribed 500 times, with the retail portion getting booked 553 times and non-institutional investors picking 868 times their quota of shares. The price band of the offer, which opened for subscription on February 16 and closed February 20, was fixed at Rs 80-84 a share. The company raised Rs 28.22 crore through the IPO, which was purely  a fresh issue of 33.6 lakh shares.

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Corporate Capitalventures was the book-running lead manager, Skyline Financial Services India was the registrar and SS Corporate Securities the market-maker for the issue.

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The company plans to use the proceeds to meet its working capital requirements and invest in subsidiary Zeacloud Services. The remaining funds will be used for general corporate purposes.

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Esconet Technologies provides high-end supercomputing solutions and data centre facilities that include storage servers, network security, virtualisation, and data protection.

The company offers servers and graphics workstations, data storage solutions, virtualisation software, backup and disaster recovery solutions, data centre and access networks, advanced software defined networks and analytics software.