Excel Infoways initial public offer (IPO) ended on Friday, 17 July 2009 with subscription of 1.97 times, receiving bids for 1.11 crore shares as against 56.67 lakh shares on offer

The IPO was subscribed 1.9 times, with retail investors portion getting subscribed 2.64 times. The portion reserved for non-institutional investors was subscribed 5.30 times. The qualified institutional buyers (QIBs) portion was subscribed 0.48 times.

The price band for the IPO, which opened on 14 July 2009 was set at between Rs 80 to Rs 85 per share. The company will raise Rs 45.33 crore at the lower end of the price band and Rs 48.16 crore at the higher end of the price band.

The issue will constitute 26.77% of the fully diluted post issue paid up capital of the company. The promoters holding will be 70.52% post the issue. The equity shares are proposed to be listed on Bombay Stock Exchange of India (BSE) and National Stock Exchange (NSE).

The proceeds from the issue will be utilised in setting up new facilities and for strategic investment or joint ventures. The company has planned an expansion plan entailing a total investment of Rs 77.27 crore.

Excel Infoways plans to utilise the IPO proceeds for setting up new facilities in Borivali and Kandivali in Mumbai, at a cost of Rs 47.27 crore. After the expansion, the company will have added another 300 seats to the existing 150. The company also proposes to allocate Rs 30 crore, either to make strategic investments or to enter into joint ventures, Khurana added.

Rating agency CARE had assigned a ‘CARE IPO Grade 1' to the IPO of Excel Infoways, which indicates poor fundamentals.

Excel Infoways is a BPO and customer contact center based in India. It provides offshore BPO services to clients primarily in telecommunications and financial sector. It mostly caters to clients in the US and UK. The company is registered member of National Association of Software and Services Companies (NASSCOM).