© Reuters.
MUMBAI – Net Avenue Technologies made a stellar debut on the NSE SME platform today, with its shares opening at ₹42, marking a significant premium of 133.33% over the IPO price band of ₹16-₹18. This impressive launch follows a highly successful initial public offering (IPO) that was oversubscribed by an astonishing 511 times, reflecting robust investor confidence.
The company, which operates online direct-to-consumer platforms for Indian ethnic wear such as cbazaar.com and ethnovog.com, aimed to raise ₹10.25 crore (INR10 crore = approx. USD1.2 million) through the public offering by issuing around 57 lakh shares. Retail investors showed unprecedented interest with the retail portion being subscribed 721 times, non-institutional investors at 616 times, and qualified institutional buyers (QIBs) at 61 times their allocation. The IPO attracted a grey market premium (GMP) of ₹24, underscoring the high anticipation and investor enthusiasm surrounding the listing.
Founded in 1998 by Rajesh Nahar and Ritesh Katariya, Net Avenue Technologies has reported a revenue increase of 5.34% despite a PAT decrease of -32.55%. The fresh capital from the IPO is earmarked for boosting working capital, enhancing customer acquisition strategies, and supporting broad corporate objectives. Shreni Shares acted as the book-runner for the IPO with Bigshare Services serving as the registrar.
Retail investors were required to invest a minimum of ₹144,000 for an application lot size of 8000 shares. The company structured its share allocation to ensure a diverse investor base, reserving half of the IPO for QIBs, at least thirty percent for retail investors, and fifteen percent for non-institutional investors (NIIs).
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