Tuesday, April 16

Delhi-based E2E Networks’ IPO crosses one-third mark on First Day

Delhi-based Cloud Service Provider, E2E Networks Ltd. which is backed by Blume Venture Advisors witnessed its initial public offering cross the one-third mark on its first day itself. Post the IPO listing, the company is looking forward to entering on National Stock Exchange’s Emerge platform for small and medium enterprises.

According to stock exchange data, the IPO received bids for 1.47 million shares against 3.86 million shares on offer. The book which currently does not have an anchor allotment saw 38% subscription at the end of the first day.

Holani Consultants Pvt. Ltd, the merchant banker managing the IPO informed that about half of the IPO was reserved under non-institutional category comprising of wealthy individuals and corporate bodies.

E2E is promoted by Tarun Dua and wife Srishti Baweja is looking forward to a valuation of $12.17 million (Rs 81.19 crore) through the IPO.

Founded in 2009, E2E Networks Limited is a pure SSD cloud player with headquarters in Delhi. The cloud service market is constantly growing in India and the spending is seen reaching almost $2 billion by the end of 2020, the firm’s IPO filing noted.

The Cloud Infrastructure provider has reported a 37.5% jump in revenues from operations to Rs 29.3 crore for the year ended March 2017, from Rs 21.4 crore a year ago.

Blume Ventures, on the other hand, is considered as one of the most prolific investors in the Indian startup ecosystem with a portfolio of more than 100 firms and 80 active startups. It is selling about 743,000 shares, or nearly one-third of its stake, through the IPO.

Cab aggregator TaxiForSure (which was acquired by Ola), Cloud telephony firm Exotel and micro-delivery startup Milkbasket are some prominent names from the company’s portfolio.