REUTERS – Indian e-retailer Infibeam filed a draft prospectus for an initial public offering (IPO) to raise 4.5 billion rupees ($70.69 million), becoming the first of India’s ecommerce companies to list its shares on the domestic market.
Infibeam’s IPO comes at a time of intense competition in India’s e-commerce sector, with high cash burn rates at industry leaders Flipkart, Snapdeal and Amazon.com’s India unit raising concerns among investors.
A top Flipkart executive told Reuters in May it was not yet ready for the stock market and the resulting investor scrutiny.
Launched in 2007, Infibeam runs the infibeam.com and BuildaBazaar.com websites. Last year, Sony Music bought a 26 percent stake in Indent, the company’s digital entertainment arm.
The company will use the IPO proceeds for expanding business, including setting up a cloud data unit and 75 logistics centres.
($1 = 63.6600 rupees)
(Reporting by Nivedita Bhattacharjee and Devidutta Tripathy in Mumbai; Editing by Biju Dwarakanath)
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