E2E Network promoters and backers make a killing: IPO oversubscribed 70X

E2E network, which opened an initial public offering (IPO) last week on NSE Emerge, closed with an oversubscription of 70 times Monday.

The Blume Ventures-backed cloud computing firm issued around 3.86 million shares with a minimum cap of buying 2,000 shares at a fixed price of Rs 57 apiece and received around 270.7 million bids.

“We are overwhelmed by the response from the market. Everyone is excited about going public. Most older employees have Esops. This is the start of a journey, we hope to use this as an inflection point and grow bigger,” said Tarun Dua, CEO, E2E Network.

Half the IPO was reserved for the non-institutional category comprising corporate bodies and HNIs. The other half was for retail investors, according to a report from VCCircle.

The report added that qualified institutional buyers (QIBs) bid for 6.25 million shares.

The non-institutional investors bid for roughly 239.66 million shares against a reserved shares of 1.93 million. Retail investors bid clocked at 24.92 million shares against 1.93 million shares.

Launched in 2009, E2E Networks provides cloud computing infrastructure and managed services to about 900 customers, including Jabong, CarDekho, Clovia and others.

Blume is also set to make partial exit by selling about 743,000 shares, or nearly one-third of its stake, through the IPO.

Indian startup ecosystem has been observing some IPO exits in the form of Newgen Software Technologies and BharatMatrimony.

IDG Ventures, Sapphire Ventures, Canaan Partners and Mayfield Fund are some of the investors which witnessed high returns through the recent IPO exit of their respective investees.