22 March 2016 Current Affairs: Infibeam Incorporation Ltd, the first Indian e-commerce firm to launch an initial public offering (IPO), saw its issue being subscribed 0.21 times on the opening day of the share sale on March 21,2016.According to data from BSE, the qualified institutional buyers portion was subscribed 0.22 times, with all the bids coming in from foreign institutional investors, while the retail portion was subscribed 0.17 times.The Ahmedabad-based e-tailer, which aims to raise Rs.450 crore from the share sale, has already run into problems with two of the four domestic investment banks opting out on concerns over pricing and timing of the issue.Kotak Mahindra Capital and ICICI Securities withdrew as bankers to the issue. SBI Capital Markets Ltd and Elara Capital (India) Pvt. Ltd are the two bankers managing the offer currently. The issue closes on March 23,2016.Market regulator Securities and Exchange Board of India (Sebi) introduced the concept of anchor investors in a public issue in 2009 with a view to having a set of committed investors anchoring a transaction notwithstanding the market conditions.Infibeam has fixed a price band of Rs.360-432 per share for its public offer, and investors deem it to be expensive.An anchor book, also known as anchor allotment, is that portion of the IPO that bankers can allot to institutional investors on a discretionary basis. Anchor-book subscription opens a day before the launch of a public issue and acts as an indicator of institutional investors’ confidence in the issue.In an email response, Infibeam said the company, in its discretion and in consultation with its book-running lead managers, has decided against having anchor investors in the issue.Also, the e-commerce sector, which is fiercely competitive, is facing several headwinds, including funding, and companies are facing severe stress on valuations.Its other business, that is, Buildabazaar, which provides services to enable merchants to set up online storefronts, is also smaller in revenue terms to global firms like Shopify.com, the note said, and added that even if the former does gain a dominant position in India, it is insufficient to justify the valuation.Infibeam, founded by former Amazon executive Vishal Mehta, turned profitable in the first six months of 2015-16. The company posted a revenue of Rs.171.3 crore and a net profit of Rs.6.6 crore for the six months ended September 2015. It reported a revenue ofRs.288.2 crore at a net loss of Rs.9.8 crore for the year ended 31 March 2015.The firm will use the IPO proceeds to set up a cloud data centre and 75 logistics centres, it said in its prospectus.After the stock exchange listing, Infibeam will be valued at Rs.2,250 crore, Mehta had said at a press conference earlier this month.