A bell stands inside a stock exchange. (Photographer: Brent Lewin/Bloomberg)

Xelpmoc Design Closes 9% Below IPO Price On Stock Market Debut

Shares of Xelpmoc Design & Tech Ltd. closed at Rs 59.85 apiece on the NSE on its debut on the bourses compared with its issue price of Rs 66—a discount of 9.3 percent. The stock opened 13.6 percent lower.

The Bengaluru-based IT services provider’s initial public offering was subscribed around 3.25 times on its final day of bidding on Jan. 25, with highest demand coming from non-institutional investors. The price range was Rs 62-65 and it received bids for 66.4 lakh shares.

The total size of the IPO aggregated to Rs 23 crore. The company had also offered a discount of Rs 3 on the issue price to retail investors.

The firm raised Rs 10.36 crore from two anchor investors—University of Notre Dame du Lac and Washington University-Chanakya Capital Partners.

Xelpmoc Design proposed to utilise IPO proceeds for the purchase of IT hardware and network equipment for development centres in Kolkata and Hyderabad, funding the company’s working capital requirements and for general corporate purposes.

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