Excelsoft Technologies IPO: Day 1 Highlights
Excelsoft Technologies has officially opened its IPO for subscription from November 19 to 21, 2023. The price band for the shares is set between ₹114 and ₹120, valuing the company at around ₹1,380 crore at the upper end of the range. This IPO aims to raise ₹500 crore, which will be utilized for acquiring land and constructing a new facility in Mysore and enhancing its IT infrastructure.
The current Grey Market Premium (GMP) of ₹15 indicates that shares are trading at ₹135, suggesting a potential listing gain of about 12.5% over the issue price of ₹120. This positive sentiment in the grey market could make the IPO attractive to retail investors, especially in a country like India, where the appetite for new investment opportunities is high.
Excelsoft Technologies is a well-established player in the learning and assessment sector, boasting over 20 years of experience. The company has built a reputation for delivering technology-driven solutions through long-term agreements with enterprise clients worldwide. This credibility could play a significant role in attracting investors to its public offering.
According to Swastika Investmart, the IPO is aggressively priced with a P/E ratio of around 35, leading to a neutral rating. The firm raised ₹150 crore from anchor investors, including prominent names like Bengal Finance and Societe Generale. This backing from institutional investors provides an additional layer of confidence for potential retail investors.
Excelsoft has reserved 50% of the shares for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors. This allocation strategy is designed to ensure a diverse investor base, which is crucial for the success of the IPO.
The basis of allotment for shares will reportedly be finalized on November 24, and refunds will be processed on November 25. Investors can expect their shares to be credited to their demat accounts on the same day. The listing of Excelsoft Technologies shares on BSE and NSE is tentatively scheduled for November 26.
As the IPO unfolds, potential investors are urged to conduct thorough research and consult with financial experts. The excitement surrounding this offering highlights the growing interest in tech-driven companies in India's vibrant market.
