Xtranet Technologies sets ₹127 cap for ₹167 crore IPO
Indian IT firm Xtranet Technologies has priced its ₹167 crore entirely fresh issue at up to ₹127 per share, as a shrinking grey market premium signals tempered retail expectations ahead of its July debut.
Xtranet Technologies has fixed a price band of ₹120 to ₹127 per share for its upcoming initial public offering, seeking to raise ₹166.80 crore. The Indian IT services provider will open the book-built issue for subscription on July 23 and close it on July 27. Shares with a face value of ₹10 are expected to begin trading on the NSE and BSE on July 30.
The offering consists entirely of a fresh issue of 1.31 crore shares, with no existing shareholders selling stakes. This structure means all capital raised will flow directly to the company rather than to early investors, avoiding immediate post-listing share overhang. The firm plans to use the proceeds to repay outstanding borrowings, fund capital expenditure for hardware and systems, and meet working capital requirements.
Investor appetite appears to be cooling ahead of the launch. The grey market premium for the issue has fallen sharply from ₹25 to ₹10 as of July 20, according to unlisted market trackers. This drop halves the expected first-day premium, pointing to an estimated listing price of around ₹137, or just 7.87% above the upper end of the price band.
Founded in 2002, Xtranet provides end-to-end technology services including enterprise resource planning implementation, data centre management, and disaster recovery. Its client base spans government departments, public sector undertakings, and enterprise customers across multiple Indian states.
The company is attempting to shift its revenue model toward proprietary products. "The launch of our proprietary platforms, Synergy and XtraTrust, in the recent past marks the next phase of our business, complementing our services with platform-led offerings," said Sukhbir Singh Kukreja, Promoter and Managing Director of Xtranet Technologies. Synergy is a low-code digital transformation platform, while XtraTrust provides digital trust and PKI-based authentication.
Under the issue's allocation structure, up to 50% of the net offer is reserved for Qualified Institutional Buyers. Non-Institutional Investors are guaranteed at least 15% of the shares, while Retail Individual Investors have been earmarked a minimum 35% portion. Anchor investor bidding is scheduled for July 22. Retail investors must bid for a minimum of 110 shares, requiring an investment of ₹13,970 at the top of the price band.
