Xtranet Technologies is set to announce its IPO allotment today, with the grey market premium (GMP) indicating a modest listing gain. The GMP stands at Rs 8 per share, suggesting a listing price of approximately Rs 135, which is about 6% above the IPO's upper issue price of Rs 127.
The IPO, open for subscription from July 23 to July 27, was oversubscribed 12.24 times, reflecting strong demand across investor categories. The Non-Institutional Investor (NII) portion saw the highest interest with a 26.65-times subscription, followed by the retail segment at 8.98 times and Qualified Institutional Buyers (QIBs) at 7.13 times. The Rs 166.80 crore public issue consisted entirely of a fresh issue of 1.31 crore equity shares, with no Offer for Sale (OFS) component.
Proceeds from the IPO will be directed towards the company's expansion plans and other business requirements. Specifically, Rs 102 crore will be allocated for working capital needs, Rs 21.99 crore for the repayment or prepayment of borrowings, and Rs 7.30 crore for capital expenditure, including system and hardware upgrades.
Investors can check their allotment status through platforms like KFin Technologies, NSE, and BSE by entering their PAN, application number, or DP/Client ID. Share India Capital Services was the book-running lead manager for the issue, while KFin Technologies served as the registrar.
Founded in 2002, Xtranet Technologies is an integrated IT solutions provider specializing in digital transformation, cloud computing, and cybersecurity. The company reported a 32% increase in total income to Rs 366 crore in FY26, with profit after tax rising 36% to Rs 41 crore.
Background
The positive sentiment in the grey market reflects investor confidence in Xtranet Technologies' business model and growth prospects. The company's focus on digital transformation and cloud services positions it well in the rapidly evolving IT sector.
As Xtranet Technologies prepares for its market debut, investors will be watching closely to see if the actual listing price aligns with the grey market's optimistic expectations.
