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Business

Share sale scrapes through amid valuation concerns

MUMBAI (NewsRise) - Online market place Infibeam's initial share sale scraped through on the last day of the public offer, amid concerns the stock was overpriced and India's e-commerce industry was heading for a cutthroat competition that would hurt profits for many years. Infibeam's IPO was closely watched by investors and industry experts, as it was perceived as a harbinger for the dozens of online ventures looking to list in future. However, several analysts had warned investors to stay away from the offer, citing its valuation and vulnerability in the face of stiff competition from large e-commerce companies such as Flipkart Internet, Snapeal.com and the local unit of U.S. Amazon.com. The offer was subscribed 1.1 times, according to preliminary data on the National Stock Exchange. Demand from retail and institutional investors, which remained tepid on the first two days, picked up on the last day for the offer that aimed to raise as much as $81 million.

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