Veefin Solutions IPO: Subscription Status and Key Details on Day 2
Veefin Solutions Ltd’s initial public offering (IPO) witnessed a subscription of 1.05 times on its second day. The IPO, targeted at small and medium enterprises (SMEs), commenced on Thursday, June 22, and is set to close on Monday, June 26.
During the second day of the subscription period, non-institutional bidders (NIIs) showed a favorable response, with their portion being subscribed 1.48 times. Retail investors also displayed interest, with the subscription level reaching 59%, according to data from chittorgarh.com.
As of 17:25 IST, the company has received bids for 56,73,600 shares out of the 5,699,200 shares on offer, as reported by chittorgarh.com.
The IPO has been priced at ₹82 per share, and it consists of 56,99,200 equity shares, each with a face value of ₹10. The total value of the IPO amounts to ₹46.73 crore. The minimum lot size for applications is set at 1,600 shares, equivalent to ₹1,31,200 per application. Individual investors have been allocated 50% of the shares, while the market maker reserve portion amounts to 2,88,000 equity shares, according to the company’s information.
Veefin Solutions plans to utilize the proceeds from the public offering for various purposes, including global sales and marketing expenditures, new product development, enhancing and maintaining current products, and general business requirements.
The company primarily operates in two segments: supply chain finance tech solutions and digital lending suite solutions. Its clientele includes banks, non-banking financial institutions, fintech companies, and marketplaces. Among its corporate clients are Yes Bank, IndusInd Bank, Indian Bank, The City Bank (Bangladesh), Aditya Birla Capital, Mintifi, BRAC, VP Bank, Riyadh Bank, and Ambit Finvest.
The allotment status of Veefin Solutions’ IPO will be available by Friday, June 30, and the allocated shares will be credited to investors’ demat accounts by Tuesday, July 4. The company’s shares are scheduled to be listed on the BSE SME on Wednesday, July 5, following the IPO. Shreni Shares Pvt. Ltd. is leading the IPO.
Also Read: Veefin Solutions IPO Details | GMP, Date, Price, Review
For the financial year 2021-2022, Veefin Solutions recorded a total revenue of ₹655.19 lakh and a net profit of ₹70.01 lakh. In the ten months ending in January 2023 (10MFY23), the company generated revenues of ₹1262.36 lakh and a net profit of ₹350.02 lakh, as reported by the company.
Dilip Davda, the contributing editor at Chittorgarh.com, expressed his view on the IPO, stating, “Although the company claims uniqueness in the supply chain finance (SCF) segment, market observers point out the presence of several players offering similar services. Considering its impressive financial performance in FY23, the issue appears to be aggressively priced. Investors who are well-informed and willing to take risks may consider investing, while others may choose to stay away.”
About Veefin Solutions:
Veefin Solutions Limited is a Mumbai-based company that was founded in 2020. The company specializes in providing digital lending and supply chain finance (SCF) technology product solutions.
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