Fusion CX has "ok" listing

Fusion CX made a positive but modest debut on the stock exchanges today. The stock listed at Rs. 305 on the NSE, a premium of 5.54% over its IPO price of Rs. 289, while it opened at Rs. 292 on the BSE, a premium of just 1.04%. On the BSE, the stock subsequently touched an intraday high of Rs. 313.15 before easing to Rs. 300.95, still up 4.13% over its issue price. Trading volume stood at 7.58 lakh shares, with turnover of Rs. 22.70 crore and market capitalisation of Rs. 4,348.86 crore.

Trigger

• IPO price: Rs. 289 per share.
• NSE listing: Rs. 305, a premium of 5.54%.
• BSE listing: Rs. 292, a premium of 1.04%.
• Issue size: Rs. 702 crore, comprising Rs. 500 crore fresh issue and Rs. 202 crore OFS.
• Overall subscription: 4.45 times.
• QIB subscription: 4.01 times.
• HNI subscription: 4.50 times.
• Retail subscription: 5.70 times.

Fusion CX is a Kolkata-headquartered, 22-year-old Kolkata headquartered digital customer experience (CX) service provider, serving across platforms such as voice, email, chat, social media, message, besides providing AI data infrastructure services, to 208 clients.

Our conclusion in the IPO Analysis - We hold negative view on the outsourcing industry due to AI and believe Fusion CX is likely to be impacted adversely, both in medium term and long term. Hence the IPO is an avoid.