Mobile marketing firm Affle India, whose Rs 459-crore public issue was subscribed 86.49 times last week, makes its market debut on August 8. The final issue price has been fixed at Rs 745, the higher end of the price band.
The issue got a good response from investors across categories. The retail investors’ category saw a subscription of 10.96 times, while the reserved portion of qualified institutional buyers was subscribed by 55.3 times and non-institutional investors 199 times.
"Affle is expected to list at 20-25 percent premium to issue price. We have positive outlook, as the company has high growth market with substantial barriers to entry," Astha Jain, Senior Research Analyst at Hem Securities, told Moneycontrol.
The premium, however, could be capped due to current market conditions, some experts feel. The benchmark indices have already corrected by more than 9 percent and broader markets have fallen by double digits since the budget day.
The grey market premium to issue price is around Rs 175-200 per share, sources told Moneycontrol.
Jain said the company with its profitable, low-cost business model built on an asset light, automated and scalable platform is well placed to tap opportunities in the sector.
Prashanth Tapse, AVP Research at Mehta Equities, also expects a listing with a minimum premium of around 25 percent on the issue price of Rs 745. He said the listing could also be around Rs 950-1,000 in the opening trades.
Affle India is a decade-old global technology company with a proprietary consumer intelligence platform that delivers consumer acquisitions, engagements and transactions through mobile advertising. This platform is used by (B2C) companies across industries, including e-commerce, fin-tech, telecom, media, retail and FMCG companies.
"We like Affle's unique business model with asset-light growth strategies and debt-free status...we believe Affle is well placed in the mobile only advertising approach to tap the growth," said Tapse.
According to Rajnath Yadav, Research Analyst at Choice Broking, the listing could be around Rs 895-900 levels. Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services said the listing should see a good premium, but it will also depend on current market conditions.
Microsoft has a 6.48 percent stake in the Singapore-based Affle Holdings. Anuj Khanna Sohum and Affle Holdings are promoters of the company.
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