Esconet Technologies shares rally 7% after listing at 245% premium
Upstox
3 min read • Updated: February 23, 2024, 4:50 PM
Summary
The Esconet Technologies IPO, which was open for subscription from February 16 to 20, received bids for a total of 1,13,38,36,800 equity shares against 22.3 lakh shares on offer.
IT infrastructure services provider Esconet Technologies made a bumper debut on stock exchanges on Friday. Shares of the company were listed at a whopping premium of 245% to the issue price of ₹84 per share.
After listing, the stock rallied further 7% to hit a high of ₹294.95 per share on NSE in morning deals. Around 12.04 lakh shares traded in the first 30 minutes of trade. Traded value was ₹34.68 crore.
The stock later gave up some of the gains to trade at ₹275.50, down by around 5% from the listing price. The stock is listed on the NSE Emerge, the SME platform of the exchange.
Esconet Technologies IPO subscription
The public offer of New Delhi-based Esconet Technologies Ltd received a phenomenal response from investors during bidding that closed on Tuesday, February 20. The ₹28.22-crore initial public offering was subscribed by a whopping 507 times on the final day riding on a strong demand from retail investors.
The IPO, which opened for subscription on February 16, received bids for a total of 1,13,38,36,800 equity shares against 22.3 lakh shares on offer.
The non-institutional investors’ (NIIs) category garnered the highest subscription of 868 times. NII investors placed bids for around 41.56 crore shares as against 4,78,400 shares on offer.
The qualified institutional buyers (QIB) portion garnered bids for more than 9.93 crore shares against 636,800 shares offered for them, showing a bidding of 155 times.
The retail individual investors’ category was subscribed 553 times as applications for 61.89 crore shares were received against 11.15 lakh shares on offer.
The company announced the share allotment on February 21. The allotment status can be checked on the official website of the registrar, Skyline Financial Services Pvt Ltd.
Esconet Technologies IPO details
Esconet Technologies had fixed the IPO price at ₹80-84 per share. The public offer comprised a fresh issuance of 33.6 lakh equity shares of a face value of ₹10 each and no offer for sale (OFS) component.
The lot size for the issue was 1,600 shares. The minimum investment needed for the IPO of IT systems integrator firm was ₹1.3 lakh. For high networth individuals (HNIs), the minimum investment was of two lots, or 3,200 shares, amounting to ₹2.68 lakh.
According to Esconet Technologies, the IPO proceeds will be utilised for meeting working capital requirements and investment in its wholly-owned subsidiary Zeacloud Services Pvt Ltd.
About Esconet Technologies
Esconet Technologies, incorporated in 2012, is a leading player in the information technology (IT) sector. The company primarily offers services related to IT infrastructure, cloud computing and data security. The company caters to SMEs, large enterprises and public sector clients.
Esconet has also introduced HexaData brand that specialises in high-performance Servers, Workstations, and storage systems. Its strategic collaboration with Nvidia has resulted in its growth in the Artificial Intelligence (AI) and Machine Learning (ML) domain, enhancing servers and workstations.