Fairfox-controlled business services provider Quess Corp Ltd made a stellar debut on stock exchanges on Tuesday with its shares surging 57% from the initial public offering price.
The shares listed at Rs 499 apiece compared with the issue price of Rs 317 on the BSE. The shares traded between Rs 508.60 and Rs 480.05 before closing at Rs 503, giving the company a market valuation of Rs 6,335.45 crore ($945 million). The benchmark Sensex gained 0.66%.
The spectacular listing comes after the company's IPO was subscribed a whopping 144 times, making it the most attractive primary market offering in more than eight years.
Quess Corp joins companies such as diagnostics firm Thyrocare Technologies Ltd, gas distributor Mahanagar Gas Ltd and microlender Equitas in making a robust start on the bourses in recent months. The strong listings would give hope to other companies waiting to float their IPOs. Many companies had earlier this year shelved their planned share sales due to market volatility but a rebound over the past few weeks has boosted sentiment.
Quess Corp's IPO comprised a fresh issue of shares to raise Rs 400 crore to fund the company’s expansion plans, repay debt, fund capital expenditure requirements of the holding company as well as its subsidiary MFXchange US and other purposes. Ahead of the IPO, Quess Corp raised Rs 180 crore from a group of 15 anchor investors including entities under Fidelity, Blackrock, Goldman Sachs, Wasatch and Grandeur Peak.
Quess Corp is the second listed firm for Canada's Fairfax Financial Holdings Ltd in India, after parent Thomas Cook. The company, which was set up in 2007, had filed its draft red herring prospectus for the IPO with the Securities and Exchange Board of India in February and received the capital markets regulator's approval last month.
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