Fusion CX shares list at 5.5% premium on NSE — should you buy, sell or hold?

Read Also: From selling raincoats to Rs 150-crore 'Ideal Ice Cream': How Prabhakar Kamath built Mangaluru's popular ice cream brand The listing was broadly in line with grey market expectations. The grey market premium (GMP) had indicated a potential listing gain of nearly 5% on the morning of October 22, according to InvestorGain. However, GMP is an unofficial indicator of market sentiment and does not guarantee the actual listing price or investor returns.

The Rs 702-crore IPO of Fusion CX received bids for 6,24,63,831 shares against 1,40,40,000 shares on offer, translating into an overall subscription of 4.45 times. Retail investors led the demand, subscribing to their portion 5.70 times. The non-institutional investor (NII) category was subscribed 4.50 times. The IPO comprised a fresh issue of shares worth Rs 500 crore and an offer for sale (OFS) of 69.90 lakh shares worth Rs 202 crore.

While the proceeds from the fresh issue will go to the company, the OFS will allow existing shareholders to sell part of their holdings. Fusion CX had fixed the IPO price band at Rs 275-289 per share. Retail investors could apply for a minimum of 51 shares, requiring an investment of Rs 14,739 at the upper end of the price band. Fusion CX plans to use a portion of the proceeds from the fresh issue to repay or prepay certain outstanding borrowings of the company and its subsidiaries, including select step-down subsidiaries.

The company also intends to invest in its step-down subsidiaries, Omind Technologies Inc. and Omind Technologies Private Limited, to upgrade its information technology tools, including Arya and MindVoice. The proposed investments are aimed at strengthening its technology capabilities and operational infrastructure as it expands its customer experience solutions. Should you buy, sell or hold? Mahesh M.

Ojha, Vice President, Research and Business Development at Kantilal Chhaganlal Securities Pvt Ltd. said, "Allotted investors can book partial listing gains; the remaining can be held for the long term ." Another analyst, Sarvam Goel, founder of Pocketful said, "Investors who received allotment can hold and track execution. Those who missed the IPO can watch the business closely, as a good entry opportunity could emerge post-listing."

Incorporated in 2004, Fusion CX is a technology-driven customer experience (CX) solutions provider offering multilingual services across voice, chat, email, social media and messaging platforms. Its services include customer acquisition, customer support, collections, customer retention and technical assistance, along with digital solutions. Through its technology subsidiary, Omind Technologies, Fusion CX also develops artificial intelligence-powered tools for customer engagement, marketing, quality automation and workforce management.