Identixweb IPO booked 14% on Day 1: Check issue size, price band & more

Identixweb IPO opened for subscription on March 26 amid a tepid response. The BSE SME issue witnessed a muted demand from the investors. On the first day of bidding, the IPO was booked only 14%. The IPO attracted bids for over 2.8 lakh shares against 20.5 lakh shares on offer.

The retail investors’ portion was booked at 27%, with bids for 2.72 lakh shares compared to 10.26 lakh shares on offer. Meanwhile, the Non-Institutional Investors’ (NIIs) segment was booked only 2%. The category received only 8,000 shares compared to 4.4 lakh shares on offer. The Qualified Institutional Buyers (QIBs) did not submit any bid on Day 1. The company has set aside 5.84 lakh shares for the category. The Identixweb IPO will close for bidding on March 28.

Ahead of the launch of the issue, Identixweb also raised ₹4.73 crore via its anchor investor round. The company's board of directors, at its meetings held on March 25, finalised the allocation of almost 8.76 lakh equity shares to two anchor investors at an allocation price of ₹54 per share.

Identixweb IPO details

The Identixweb IPO is a 100% book-built issue that aims to raise ₹16.63 crore. The offer is made up entirely of a fresh issuance of 30.80 lakh shares of face value of ₹10 each.

The company has fixed the price band of the issue at ₹51 to ₹54 per share. The lot size, or the minimum bid quantity to apply for the issue, has been set at 2,000 shares. This equates to a minimum investment amount of around ₹1.08 lakh for retail investors (if bids are placed at the cut-off price) and ₹2.16 lakh for high networth investors (HNIs) who need to bid for a minimum of 2 lots.

Identixweb has appointed Beeline Capital Advisors Pvt. Ltd as the book-running lead manager of the IPO, while Skyline Financial Services Pvt. Ltd is the registrar for the issue. The market maker for the Identixweb IPO is Spread X Securities Pvt. Ltd.

Identixweb IPO: Important dates

The Identixweb IPO will remain open for bidding from March 26 to March 28. After the bidding is closed, the allotment of shares is expected to be finalised on April 1.

Successful bidders can expect the shares to be credited to their Demat accounts by April 2, with others receiving refunds on the same day.

Identixweb shares are scheduled to be listed on the BSE SME platform on April 3.

Identixweb IPO: Use of proceeds

Identixweb proposes to utilise the net proceeds from the IPO mainly for marketing, research and hiring new talent.

In its red herring prospectus (RHP) submitted to the Securities and Exchange Board of India (Sebi), the company said that it plans to use nearly ₹4.2 crore of the IPO proceeds for investment in market research and product development through talent hiring. It also proposed to use ₹4.15 crore for investment in the subsidiary for product development through talent hiring.

Another ₹2.5 crore would be used for investment in marketing to support the organization’s growth plans in or outside India. The remaining amount would be used for general corporate purposes.

Identixweb IPO: About the company

Established in 2017, Identixweb is an IT firm that offers software as a service (SAAS). It offers services like web app development, e-commerce store development, UI/UX design, customised software development, website development, and support and maintenance, with a key focus on Shopify application development.

With more than 50 professionals, Identixweb has developed over 35 public Shopify apps, serving industries like e-commerce, fintech, fashion, and SaaS.

The firm has two subsidiaries – Identixweb LLC and Munim ERP Pvt. Ltd.

Identixweb IPO: Company financials

For the first six months of the current financial year 2024-25 ended September 2024, Identixweb reported revenue of ₹4.79 crore and a profit after tax (PAT) of ₹2 crore.

In FY 2023-24, the company reported a revenue of ₹6.66 crore compared to ₹6.27 crore in FY 2022-23. Its net profit doubled to ₹2.77 crore in FY24 against ₹1.35 crore in FY23.