The Infosys IPO almost failed
Infosys was one of the first IT companies in India. Infosys also holds the bragging rights of the first IPO of an Indian IT and IT-enabled services company, which was a landmark moment in the history of Indian businesses and the securities market of India.
25 June 1993 was not any ordinary day in the Bombay Stock Exchange. On this very day, Infosys Technologies was listed on BSE. The listing was a massive one. The debut trade ended with Infosys gaining around 50% and closed at ₹160.
Infosys launched its IPO for public subscription in February 1993. The company did not receive a very warm response from the investors. The issue was undersubscribed. The founders of Infosys were looking at a possible flop show in the coming months.
There were many concerns about the company. Before the IPO, the company had a revenue of just ₹8.66 crores. The company was trying to raise ₹13 crores from the market. It was too much of an ask to make. It was also the time when BSE was still dealing with the aftermath of the Harshad Mehta Scam.
With the issue undersubscribed, the IPO managers Enam Securities and Morgan Stanley had to invest in Infosys. Morgan Stanley took a 13% stake in the company. Infosys also reached out to investors like V G Siddharth of Cafe Coffee Day.
Investors soon took notice of the company. The Infosys shares are listed at ₹145 at a premium of around 50%. Soon things turned good for the company. After a stellar debut, the share price of Infosys closed at ₹160 for the first day, a 68% gain in one day.
In August 2021, Infosys became the 4th Indian company to touch the market capitalisation of $100 billion. From almost a failed IPO to becoming one of the biggest IT companies in the world, Infosys has come a long way.
