Excel Infoways IPO gets fully subscribed on final day

>> Monday, July 20, 2009

The Initial Public Offer (IPO) of the business process outsourcing (BPO) firm Excel Infoways Ltd got fully subscribed on the final day of offer today, with most of the bids coming in from non-institutional investors.

The IPO of Excel Infoways received bids for over 68.66 lakh equity shares representing 1.21 times the shares offer, according to the data available with the National Stock Exchange (NSE).

Excel had come out with an IPO of 56.67 lakh shares. The price band for the issue has been fixed between Rs 80-Rs 85. The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Calculated on the basis of upper price band, the company aims to raise funds up to Rs 48.16 crore. Excel is expanding operations with two new facilities in Mumbai with an aggregate seating capacity of 300 seats.

The cost for these projects is estimated to be Rs 47.28 crore (to be funded by Rs 27 crore of IPO proceeds and balance through cash generation from operations).

Excel is also planning to utilize Rs 30 crore of the issue proceeds for strategic investments and overseas acquisitions for which the targets are yet to be identified.

The issue, which opened on July 14 got a positive response from non-institutional investors, which includes corporate and individuals (other than retail institutional investors), as they fully subscribed to the shares reserved for them.