Affle India makes strong debut, lists at 25% premium over issue price

Topics IPO

Shares of Affle India made a strong debut on the bourses and were listed at Rs 930 on the BSE, a premium of 25 per cent against the issue price of Rs 745. On the National Stock Exchange (NSE), the stock opened at Rs 926, a 24 per cent increase against the issue price.

Post its listing, the stock climbed up to Rs 955 on the BSE.  At 10:01 am, the stock was trading at Rs 952, 28 per cent above its issue price. A combined 1.9 million shares have changed hands on the counter on the BSE and NSE.

The mobile marketing firm's Rs 459 –crore initial public offer (IPO) received a huge response from investors as the issue was overall subscribed 86 times. The IPO had received bids for 292 million equity shares against IPO size of 3.38 million shares (excluding anchor investors' book) as per data available on exchanges.

Qualified institutional buyers (QIBs) category was subscribed 55 times while the non-institutional investors category was subscribed 199 times. The retail individual investors (RIIs) category was subscribed 11 times, data shows.

Affle India Ltd is a global technology company with two business segments: Consumer Platform and Enterprise Platform. Its Consumer Platform primarily provides services such as new consumer conversions (acquisitions, engagements and transactions) through relevant mobile advertising, retargeting existing consumers to complete transactions for e-commerce companies through relevant mobile advertising, and an online to offline (“O2O”) platform that converts online consumer engagement into in-store walk-ins.

Its Enterprise Platform primarily provides end-to-end solutions for enterprises to enhance their engagement with mobile users.

Most brokerages had assigned 'subscribe' rating to the issue. CLICK HERE TO READ FULL REPORT

“Affle India looks promising considering its strong growth in the last three years. Even though the ad tech industry is competitive, Affle outperforms its peers with a higher number of consumer profiles and data points leading to a network moat. Hence, the high valuations justify the listing premiums it deserves,” says Umesh Mehta, Head of Research at Samco Securities had said.

“The company is in a niche high growth segment, with no listed peers in India. Due to its unique business model and first of its kind listing, there is a lot of market interest in the IPO. However, given the rich valuations and technological risks in the business, investors with a high risk appetite could look at the issue only from a listing gains perspective,” analysts at Motilal Oswal Financial Services had said in IPO note.

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