This SME IPO Closes With 300x Subscription; GMP Suggests Premium Listining, Check Allotment Status

The ongoing Initial Public Offering (IPO) of Esconet Technologies, a provider of high-end supercomputing solutions and data centre facilities, has set a milestone. The IPO, which opened for subscription on February 16, has witnessed an overwhelming response from investors.

As the IPO bidding process concludes today, February 20, Esconet Technologies has garnered an astonishing 286.74 times subscription. The total bids received for the IPO stand at a staggering 63.95 crore equity shares, compared to the IPO size of 22.30 lakh shares. This reflects the immense confidence and interest investors have shown in the company's growth potential.

Breaking down the subscription figures, the retail category has seen an exceptional response with a subscription of 378.55 times, while the Qualified Institutional Buyers (QIB) category and Non-Institutional Investors' (NII) category have subscribed 39.54 times and 401.80 times, respectively.

Esconet Technologies' Grey Market Premium (GMP) today has surged to Rs 83 per share, as per market observers. This translates to a substantial premium of 98.81%, with Esconet Technologies shares commanding Rs 167 apiece in the grey market, significantly higher than the IPO price of Rs 84 per share.

Esconet Technologies IPO, a Small and Medium Enterprise (SME) IPO, is set to raise Rs 28.22 crore from the book-built issue. The IPO price band is fixed at Rs 80 to Rs 84 per share, with a lot size of 1,600 shares. The minimum investment required by retail investors is Rs 1,34,400. The subscription frenzy is expected to culminate in the finalization of allotments on February 21, paving the way for the company's listing on NSE SME on February 23.

Esconet Technologies aims to utilize the funds raised for various purposes, including working capital requirements, investments in its Wholly Owned Subsidiary, Zeacloud Services Private Limited, funding capital expenditure expenses, and meeting general corporate expenses.

Esconet Technologies has demonstrated robust financial performance in recent years. In the financial year ending March 2023, the company reported a net profit of Rs 3.04 crore, with a revenue of Rs 96.90 crore. For the period ending September 2023, Esconet Technologies posted a net profit of Rs 3.05 crore on a revenue of Rs 71.46 crore, showcasing consistent growth and stability.

Corporate Capitalventures Pvt Ltd serves as the book running lead manager for the Esconet Technologies IPO, while Skyline Financial Services Private Ltd is entrusted with the responsibilities of the IPO registrar.

Investors, industry experts, and stakeholders eagerly await the listing of Esconet Technologies, anticipating a positive market debut for the company. The overwhelming subscription figures and the soaring Grey Market Premium signify the strong investor confidence in the company's future prospects.