Infibeam Incorporation Ltd IPO Message Board (Page 9)

infibeam ipo will be cancelled due to low subscription must avoid

Subscription figures pl.

.26 total

I think we will either see the issue drop or price drop for sure..... at 220 maybe interest

I m fully agree with you

pinky jain ji do u apply for bharat wire ?

What about infibeam issue? Premium ??kitna open hoga listing pe???

INFI GMP 18-20

Avoid.
Many issues pending against this company.
Even far expensive from big E Commerce players. It might generate some premium but very risky to apply. Certainty if this opens downward it might break 300 levels.
Stay away

@ NotABagholder, thank you for ur analysis. Plz keep posting.

The most recent development is in Gujarat, where a levy of entry tax has been proposed on goods entering the state through the e-commerce route. The rate of tax, though yet to be notified, is likely to be equal to the VAT rate applicable on local sales in the state. This is a retrograde step as it imposes double taxation on e-commerce transactions, relative to ones at brick and mortar stores.
Under the current Constitutional arrangements, state VAT cannot be applied to inter-state sales. Instead, they are subjected to the Central Sales Tax (CST), which is levied and collected by the origin state. The tax is applied at the rate of 2% on sales to registered dealers and the local VAT rate to final consumers.
Under the Gujarat proposal, inter-state sales via e-commerce would now be subject to the entry tax, which would be in addition to the CST applicable in the origin state. This is retrograde as it would amount to double taxation, putting e-commerce transactions at a significant disadvantage. The Constitutional validity of entry tax is also questionable as it results in creation of fiscal barriers to free-flow of trade and commerce within the common market of India. Courts have struck down this tax in most instances. In April 2006, in Jindal Stainless Ltd & others versus State of Haryana & others, a five-judge Constitution bench of the Supreme Court held the Haryana entry tax to be unconstitutional. In 2008, the matter was referred to a larger Constitution bench for further clarification, where over 1,000 appeals and petitions are still pending.
The regulatory provisions for the levy and collection of entry tax pose significant compliance and operational challenges for Courier Service Providers (CSPs) who are obligated to collect and deposit the entry tax. The sheer magnitude of e-commerce transactions makes compliance requirements a nightmare for CSPs bringing such goods into the state. The huge volume of paperwork involving waybills, road permits, transit passes, enrolment requirements, etc, impedes CSPs from providing speedy delivery of inter-state consignments. Faced with such mounting double-tax and compliance burden, major online marketplace companies have virtually stopped delivering their products in the states of UP and Uttarakhand.
The e-commerce companies are eagerly awaiting the implementation of GST, as it would bar the levy of retrograde taxes such as the entry tax and Central Sales Tax (CST). Under GST, the tax on e-commerce would accrue to the state where the goods are consumed.
The delicious irony of the Gujarat tax proposal is not lost on tax analysts. To protect its revenues as a ‘producing state’, Gujarat has been insisting on continuation of the CST @1% on inter-state supplies from it (i.e., exports to other states), a proposal which has found place in the Constitutional Amendment Bill on GST tabled in Parliament. Now, as a ‘consuming state’, it is demanding the payment of entry tax on inter-state supplies to Gujarat, (i.e., imports from other states into Gujarat). Application of consumption taxes on both exit and entry of goods is contrary to the basic principle of destination-based taxation.
It is for this reason that all such taxes should be abolished under the GST. In addition to creating a common market, GST would end diverse regulatory requirements such as state waybills and transit forms for inter-state movement of goods. It will also enable warehousing strategies based on logistics requirements instead of tax arbitrage considerations.
By levying an entry tax on e-commerce, Gujarat and other states are guilty of running with the hare and hunting with the hounds. The proposal for the 1% origin tax and the recent destination-based entry tax are purely driven by narrow revenue considerations. The states would be well served to take a considered view of the broader economic impact of their taxation policies. Instead of short-term measures such as entry taxes, they should promote early adoption of GST and, in the interim, desist from measures that would kill the unicorns.

The e-commerce sector in India, the beacon of Start-up India, has been put under severe stress in recent times by state governments driven by a blinkered approach to protecting their tax revenues from the sector. The e-tailing industry in India has grown from $800 million in 2011 to $11.8 billion in 2015. While this rapid growth has been a boon to consumers, both in terms of lower prices and convenience of shopping, state governments are chagrined that taxes on e-tailing sales accrue to the origin state from where the goods are shipped and not to the destination state to which the goods are shipped, i.e., where the consumers reside.
A host of state governments have now started implementing harsh tax regimes, which, if not checked in time, may well end up killing the e-commerce industry.

New Delhi: The government may expand the scope of the so-called equalization levy on the flourishing digital economy that was proposed in the Union budget.

An indication of this came from the suggestions of a committee formed by the income tax department to study the taxation of e-commerce.

The ambit of the equalization levy on e-commerce transactions can be expanded in the coming years to include downloading of songs, movies and books, online consumption of news, software downloads and online sale of goods and services, the committee has suggested.

The suggestions of the panel were made public on Monday.

To be sure, the levy is proposed initially for only business-to-business transactions and not on direct sales to customers.

Based on the panel’s recommendation, the government had in the budget announced a new equalization levy of 6% to be deducted for payments made to non-residents for specified services such as online advertisements.

Also called the ‘Google tax’, it has been structured in such a way as to ensure that every entity making a payment to a non-resident for online advertisements will have to deduct this tax before making the payment.

This was brought in to ensure that global online businesses such as Alphabet Inc., Facebook Inc. and Twitter Inc. that earn considerable revenue from India are taxed in the country.

The idea of an equalization levy was part of the proposals made by the Organisation for Economic Cooperation and Development and is based on the Base Erosion and Profit Shifting (BEPS) guidelines. BEPS refers to shifting of profits from high tax-rate countries to lower ones.

The committee has also recommended that these specified services could include “designing, creating, hosting or maintenance of website, digital space for website, advertising, emails, online computing, blogs, online content, online data or any other online facility and any provision for uploading, storing or distribution of digital content”.

Besides this, “or right to or downonline music, online movies, online games, online books or online software, without a right to make and distribute any copies thereof online news, online search, online maps or global positioning system applications online software applications accessed or downloaded through internet or telecommunication networks and online software computing facility of any kind and for any purpose” could also be brought under the proposed levy over the coming years.

The other services that can be included are online collection or processing of data related to online users in India any facility or service for online sale of goods or services or collecting online payments and development or maintenance of participative online networks.

“The government has provided a rationale for taxing digital economy transactions and it seems that the government will seek to tax a wide range of digital economy transactions under the equalization levy (currently online advertising supply chain and other services through notification in future),” said Rakesh Jariwala, tax partner, media and entertainment at EY, in a note. “It is therefore imperative that the government not only lays down clear guidelines around the transaction covered under the levy but equally, the manner of determination as to whether equalization levy or income tax will apply on a transaction. Else the transaction could lead to double taxation—equalization levy as well as income tax.”

To reduce compliance and administrative costs, the committee further recommends that the equalization levy of 6% to 8% “should be restricted to business-to business (B2B) transactions, and not apply it to the business-to consumer (B2C) transactions, which are more frequent, but of smaller amounts, at this stage, or till that point of time when a mechanism becomes available, by which equalization levy can be seamlessly collected in B2C transactions, without burdening the consumer”.

@117.1 Well that''s the point I am making, even after ICICI & Kotak have withdrawn, why there names are still appearing?

Barbaad kar daigo...bhai logo ..
SOCH KAR SAMAGH KAR INVESY KARE....
NSE BOLEY CHEY......
avoid karo baki bhagwan pai chodo

This issue will tank heavily. Stay away those who lost in PCL & QH.
High risk investors can apply 3-4 application.

There are only sellers seen at a nominal premium of Rs. 2 HCG
BWR the stock will be listing under T2T segment. There are only sellers seen at a nominal premium of Rs. 2
Infibeam grey market premium of Rs. 20-22, with not much volume seen only seller, due to lack of interest in the issue premium will disappear soon

Infibeam ipo grey market premium? Plz give me the approx rate of one application....

-25 rs discount

Thanks atul

Anybody''s know that is it possible withdraw bid after IPO closing.

Yes u can before issue close

Infibeam Incorporation is India’s first e-commerce company to come with an IPO. At the lower price band of Rs 360 per equity share of Rs 10 face value, the P/E works out to 151 times the annualized EPS of Rs 2.4 and at the upper band of Rs 432, the P/E works out to 174.4 times the annualized EPS of Rs 2.5 for the half year ended September 2015. The company is looking at valuation of around Rs 2300 crore at the upper price band, when its revenues were just Rs 288.28 crore in FY 2015.

The company earns profits from its BaB marketplace business, which is essentially IT-product and related service business and cannot attract high valuations. However, the IPO seems to value the company based on its retail e-commerce web site, which does not enjoy much brand visibility and is a very small player.

There are no comparable listed companies. Until now, valuations and financials of ecommerce players have remained in the private domain and have generated lot of awe among retail and HNI investors due to seemingly high valuations being attributed to them based on fanciful expectations. Infibeam Incorporation is giving a taste of it in the public domain.

Ok. I just looked at ur id. Looking after my 3 yr old son all alone so did not go through the whole post. Since clicking on I''d u didn''t exist so wrote. Apologies for the same. Mistakes can be made unintentionally my friend. Pl do not mind. We both want investors good don''t we:-).

@Notabagholder: Are you that bravostock wordpress author?

Really loved your write-up and methodical valuation sir!! More power to you!!

While Chittorgarh site is showing ICICI & kotak among lead managers, but nse site is showing only sbi cap & elara as lead managers, request to correct misleading information.

ICICI and Kotak have withdrawn their names as BRLM

Infibeam seems to be in a pathetic condition.

Any member pls share subscription fig