Globtier Infotech Makes Modest Debut on BSE SME Platform
Globtier Infotech, a managed IT and SAP support services provider, listed on the BSE SME platform following its Rs 31.05 crore IPO. The issue was subscribed 1.34 times, with retail investors showing the most interest. The company's revenue stood at Rs 94.81 crore, up 7% year-on-year, while profit increased by 47% to Rs 5.50 crore. Despite positive financials, the listing comes with no grey market premium, indicating cautious market sentiment. The IPO proceeds will be used for working capital, loan repayment, and general corporate purposes.
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Globtier Infotech, a provider of managed IT and SAP support services, has made its debut on the BSE SME platform following the closure of its Initial Public Offering (IPO). The company's listing comes with no grey market premium, suggesting a cautious market sentiment.
IPO Details
The Rs 31.05 crore IPO comprised a fresh issue of Rs 27.44 crore and an offer for sale of Rs 3.61 crore, with shares priced at Rs 72 each. The public issue closed with a modest 1.34 times subscription, indicating a tepid response from investors.
Subscription Breakdown
- Retail investors showed the most interest, with their portion being subscribed 2.04 times.
- High Net Worth Individuals (HNIs) displayed limited enthusiasm, subscribing only 0.63 times their allotted portion.
- Notably, there was no participation from Qualified Institutional Buyers (QIBs).
Company Financials
Globtier Infotech has reported encouraging financial results:
| Metric | Value (Rs crore) | Year-on-Year Change |
|---|---|---|
| Revenue | 94.81 | 7% |
| Profit | 5.50 | 47% |
Listing Expectations
Given the zero grey market premium, market analysts anticipate the stock to list close to its issue price of Rs 72 per share. This neutral stance reflects a balanced view of the company's prospects among investors.
Utilization of Funds
The company has outlined its plans for the IPO proceeds:
- Working capital requirements
- Loan repayment
- General corporate purposes
The allocation of funds towards working capital and debt reduction could potentially strengthen Globtier Infotech's financial position and operational capabilities.
Market Outlook
The muted response to Globtier Infotech's IPO, particularly from institutional investors, may reflect broader caution in the SME segment or specific concerns about the company's growth prospects. However, the significant increase in profitability could be a positive sign for potential investors looking at the company's fundamentals.
As Globtier Infotech begins its journey as a publicly-traded entity, market participants will be closely watching its performance and ability to capitalize on opportunities in the managed IT and SAP support services sector.
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