Esconet Technologies made a remarkable debut, entering the market at a staggering 245.2 percent premium over the IPO price on February 23. The stock opened at Rs 290 on the NSE SME platform, surpassing the issue price of Rs 84, following an IPO that witnessed oversubscription by 500 times.
The listing performance exceeded expectations, with the IT infrastructure solutions firm’s shares commanding a 119 percent premium in the grey market. The grey market, an unofficial trading platform, provides insights into potential listing prices before IPO allotment and up to the listing day.
The IPO garnered massive interest, seeing subscription rates of 500 times overall, with the retail portion oversubscribed by 553 times and non-institutional investors subscribing 868 times their allotted shares. The offer, open from February 16 to February 20, had a price band of Rs 80-84 per share. Esconet Technologies raised Rs 28.22 crore through the IPO, consisting solely of a fresh issue of 33.6 lakh shares.
Corporate Capitalventures served as the book-running lead manager, Skyline Financial Services India acted as the registrar, and SS Corporate Securities was the market-maker for the issue.
Proceeds from the IPO are earmarked for meeting working capital requirements and investing in subsidiary Zeacloud Services, with the remaining funds allocated for general corporate purposes. Esconet Technologies specializes in providing high-end supercomputing solutions and data center facilities, encompassing storage servers, network security, virtualization, and data protection.
The company’s offerings include servers, graphics workstations, data storage solutions, virtualization software, backup and disaster recovery solutions, data center and access networks, advanced software-defined networks, and analytics software.
