Enfuse Solutions IPO Listed with 20% Premium

Enfuse Solutions Delivered 25% Return on Day One

Enfuse Solutions, a data management and digital services provider had a strong debut on the stock markets on Friday. Its shares are listed at a premium of almost 20% compared to the issue price. On the NSE SME platform, Enfuse Solutions shares opened at ₹115 higher than the issue price of ₹96 per share. During initial trading demand was good and the stock rose to ₹120 per share, a 25% increase from the issue price.

The strong opening and a 5% rally led to profit taking by the investors causing Enfuse Solutions shares to drop to ₹109.25 down 5% from the listing price. Despite fluctuations the stock recovered slightly and was trading at ₹113.95 down 0.90% from the listing price but still up by 17% from the issue price.

Exchange data showed that there was substantial trading activity on the NSE SME platform for Enfuse Solutions with over 8.76 lakh shares being traded during morning deals. Total traded value amounted to ₹9.99 crore resulting in the company's market capitalization standing at ₹100.82 crore.

Enfuse Solutions: Subscription and IPO Details

Enfuse Solutions launched its public offer on 15 March to raise approximately ₹22.44 crore from the public. The offer included a fresh issue of 23.38 lakh shares priced between ₹91 to ₹96 per share. Investors had to purchase a minimum of 1,200 shares requiring a minimum investment of ₹1,15,200.

The response was overwhelming with the issue being oversubscribed 357 times by the close of bidding on 19 March. The company received applications for 55,52,58,000 equity shares worth ₹5,330.48 crore far exceeding the 1,554,000 equity shares available.

Qualified Institutional Buyers section showed almost 100 times oversubscription, Non Institutional Buyers section oversubscribed by 953.22 times and retail category by 248.42 times.

Before the IPO, Enfuse Solutions had raised ₹6.37 crore from anchor investors. The company plans to utilize the IPO proceeds primarily for debt repayment of ₹3.9 crore and meeting working capital needs of around ₹11 crore

About Enfuse Solutions

Enfuse Solutions Limited, established in 201, specializes in integrated digital solutions across various domains including data management and analytics, ecommerce, machine learning, artificial intelligence, education and technology. With operations spanning four key areas, Enfuse Solutions focuses on leveraging data for informed decision making, optimizing digital platforms for seamless online experiences, providing innovative machine learning and AI solutions and enhancing educational experiences through technology.

Enfuse Solutions operates two delivery centers located in Thane and Vikhroli, India. The company earns revenue from both its domestic operations in India and by exporting services to countries like the US, Ireland, Netherlands and Canada. In the third quarter of the fiscal year 2024, Enfuse Solutions achieved a standalone net profit of ₹3.22 crore and revenue from operations increased to ₹28.05 crore.

To Summarize

The performance of Enfuse Solutions on its debut on the NSE Emerge platform has sparked deliberation among investors regarding whether to hold onto their shares or realize their gains. With the stock opening at a strong premium of 20% over its IPO price those aimed for listing gains have already secured a 25% profit on the first day of trading.

However, investors with a higher risk appetite may consider retaining their shares for the medium to long term anticipating potential growth in the company's value. Ultimately, the decision to hold or sell will vary based on individual investment goals and market dynamics.