The IPO for 3C IT Solutions & Telecoms (India) has seen strong demand, especially from retail and non-institutional investors, on its third day of bidding. Here’s a simple breakdown of what’s happening:
IPO Performance
- Opened for Subscription: Tuesday, June 4
- Total Bids on Day 3: 1,36,94,000 shares
- Total Shares Offered: 20,88,000 shares
- Overall Subscription Rate: 6.56 times
- Retail Portion: Subscribed 11.61 times
- Non-Institutional Investors’ Portion: Subscribed 1.35 times
IPO Details
- Funds to Raise: ₹11.4 crore
- Price Per Share: ₹52
- Face Value: ₹5 per share
- Minimum Investment: ₹1,04,000 (2,000 shares)
Use of IPO Funds
- Working Capital: To cover daily expenses
- Debt Repayment: To pay off some loans
- General Corporate Purposes: Other company needs
Important Dates
- IPO Allotment: June 10
- Credit to Demat Accounts: June 11
- Refunds for Unsuccessful Bids: June 11
- Listing Date: June 12 on BSE SME
Company Background
Founded in 2015, 3C IT Solutions & Telecoms (India) Limited provides various IT products and services, including infrastructure solutions, digital business solutions, and consulting solutions.
Promoters: Ranjit Kulladhaja Mayengbam and Gangarani Devi Mayengbam. Post-IPO, their shareholding will decrease from 72% to 51.66%.
Market View
Dilip Davda, a contributing editor at Chittorgarh, commented that 3C IT operates in a competitive and fragmented IT sector. The company has shown inconsistency in its financial performance, and the IPO is seen as aggressively priced based on FY24 earnings. Due to the small equity post-IPO, it may take longer to move to the mainboard. Therefore, this IPO might be considered a risky investment.
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