Affle India Shares Rise 15.2% Over IPO Price On Stock Market Debut
The Affle India stock rose as much as 28.6 percent to Rs 958.70 apiece intraday.
Shares of Affle (India) Ltd. rose 15.2 percent over its issue price of Rs 745 to Rs 858 apiece on the NSE on its listing day. The stock rose as much as 28.6 percent to Rs 958.70 apiece intraday.
The Mumbai-based digital marketing services provider’s initial public offering was subscribed around 86.5 times on the final day of bidding on July 31, with highest demand coming from non-institutional investors.
The Affle India IPO, which aimed to raise Rs 459 crore, included a fresh issue of up to Rs 90 crore. After listing, the promoter group’s shareholding will fall to 68 percent from 92 percent of the total outstanding shares before the offer.
The firm had on July 26 raised Rs 206.5 crore from 15 anchor investors—including Franklin Templeton Investment Funds, Aberdeen Asian Smaller Companies Investment Trust and Goldman Sachs India.
Affle India’s revenue jumped threefold over the last year to Rs 250 crore in 2018-19, said Chairman and Managing Director Anuj Khanna Sohum said. The company expects to continue such growth by focusing on an omni-channel strategy, Sohum, who’s also the chief executive officer, told BloombergQuint.
Moreover, the company’s business, he said, is only set to increase as people spend more time on their mobile phones.
“All the customers that we work with are increasing their mobile marketing and digital spends at an average of 25-35 percent CAGR every year”, giving Affle India enough room to grow, he said.