Infonative Solutions, the latest company to list on the BSE SME platform, had a rocky start as its shares opened a full 20% lower than the IPO price. The stock debuted at ₹63.20, well below its issue price of ₹79, delivering a muted and disappointing performance for eager investors.
Despite expectations of a flat or modestly positive listing, the company’s stock failed to gain momentum. Shortly after opening, shares slipped further, falling over 5% to ₹60.04 and hitting the lower circuit limit. This raised concerns about post-listing demand and selling pressure.
IPO Snapshot: Good Interest, But Not Enough Firepower
Infonative’s IPO, which ran from March 28 to April 3, raised about ₹24.71 crore. The offering was composed entirely of a fresh issue of 31.2 lakh shares, priced in the range of ₹75–₹79.
Investor interest varied:
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QIBs (Qualified Institutional Buyers) showed the most enthusiasm, subscribing 18.57 times.
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Retail Investors followed, subscribing 4.25 times.
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High Net-Worth Individuals (HNIs) subscribed at a modest 1.94 times.
While the overall subscription was a healthy 4.35 times, the market reaction didn’t match the demand.
What the Funds Are For
According to the company’s filing, the IPO proceeds will go toward:
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Developing new features and products for its Learning Management System (LMS)
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Buying laptops to support staff and operations
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Meeting working capital needs
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Funding general corporate expenses
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Exploring acquisition opportunities
Who is Infonative Solutions?
Founded in 1998, Infonative Solutions provides custom e-learning and training solutions. It specializes in developing digital learning content and cloud-based platforms for corporate clients across industries like banking, consulting, FMCG, and more.
Market Takeaway
The underwhelming debut shows that even a decently subscribed IPO isn’t guaranteed to soar on listing day. With strong competition in the IT-enabled services sector and cautious investor sentiment in SME stocks, Infonative Solutions has work to do to regain market confidence.
Investors will now look closely at the company’s execution and quarterly performance to see whether this rocky start was just a blip or a sign of things to come.
