E-commerce firm Infibeam has received RBI approval for FII investment of up to 49%.
Simultaneously, Sebi has sought clarification from the merchant banker of the e commerce player regarding its proposed IPO. Infibeam filed a draft red herring prospectus with the BSE and the NSE in June to raise R450 crore.
Sources said the Sebi approval should come in this month following which the company will decide on the timing of the IPO. The firm plans to utilise the proceeds to fund business expansion, meet working capital requirements and pay off debts.
Without disclosing details of clarification sought, Sebi has said it is awaiting response from the lead managers for the proposed public offer. The capital market regulator said it might issue observations on the draft offer documents within 30 days of receiving a satisfactory reply from the lead merchant banker regarding the clarification or additional information sought from them.The next update would be uploaded on the Sebi website on September 7.
Infibeam plans to invest R230 crore in making a cloud-based data centre at the Gujarat International Fin-Tec City (GIFT). Started in 2007, Infibeam runs several e-commerce services such as Infibeam.com, Indent, BuildaBazaar, Incept and Picsquare. Last year, Sony Music had bought a 26% stake in Indent. Flipkart and Snapdeal have raised massive funding rounds and Infibeam seems to be going the same way.
Infibeam operates in Ahmedabad, Delhi, Mumbai and Bangalore, and has a total of 1,300 employees. It is an online retailer for books, electronics and automobiles in India.Infibeam is valued at R1,800 crore ($283 million). Market leader, Flipkart is valued at $12 billion, while the world’s largest e-tailer Amazon has a market cap of $202 billion.
| Subscribe To Our Free Newsletter |
