- The offer has been oversubscribed 86 times, aided largely by the strong response from retail investors.
- The IPO has a fresh issue of Rs 90 crore and an offer for sale of 49,53,020 equity shares.
Initial Public Offering of the mobile marketing firm Affle India has been fully subscribed on the last day of subscription on 31st July.
The size of the public issue is Rs. 459 crore and it has received bids for 45.78 lakh equity shares against IPO size of 33.78 lakh shares as per data available on exchanges.
The offer has been oversubscribed time86 times, aided largely by the strong response from retail investors.
The retail portion was subscribed 5.73 times and the reserved portion of qualified institutional investors was subscribed 1.78 times.
The IPO has of a fresh issue of Rs 90 crore and an offer for sale of 49,53,020 equity shares, including anchor portion of 27,72,483 equity shares. The price range for the public offer, which opened for bidding on July 29, been fixed at Rs 740-745 per share.
“We like Affle’s unique business model with asset-light growth strategies and debt-free status. Considering Affle’s presence in the high growth advertising market globally as well as India, we believe Affle is well placed in the mobile-only advertising approach to tap the growth. It has a globally well-diversified clientele base in which nearly 70 percent of the revenue comes from global and the rest from domestic markets,” Mehta Equities said.
The brokerage also mentioned that at a higher price band of Rs. 745 per share Affle commands Rs. 1,899 crore market cap with P/E of 37x on its FY19 earnings and higher ROCE due to high growth in the business model which proposes a long term investment opportunity.
History of Affle India
Affle was set up with an SMS-based marketing solution in April 2005 when there was no 3 G, PDAs (private digital assistants) were all the rage, and the Blackberry was the smartest device around. Founders Anuj Khanna Sohum and Anuj Kumar were persuaded that customers would spend plenty of time on their mobile phones even back then. Currently, Affle provides a proprietary customer intelligence platform through appropriate mobile advertising that provides customer purchases, commitments, and operations.
Microsoft has a 6.48 percent stake in the Singapore based Affle Holdings. Affle, as at FY18 on a proforma basis, had approximately 1.18 billion consumer profiles and it accumulated over 140 billion data points over the preceding 12 months, which power its prediction and recommendation algorithm.