The initial public offer (IPO) for IntraSoft Technologies, that owns e-card business 123Greetings.com, which opened for subscription yesterday, has been subscribed by 0.57 times only on its first day. This is the second IPO in India for an Internet company after Info Edge, though listed companies like Network18, Northgate Technologies and HT Media have launched Internet operations in the past. In terms of bids:

— Most have come from Qualified institutional buyers (QIBs), who had, until 5 PM yesterday, bid for 88.95 percent of the 1.6 million shares in offer. Only foreign institutional investors (FIIs) have subscribed to the shares among the QIBs on the first day and there were no bids from domestic financial institutions or mutual funds.
— Non-Institutional Investors have bid for 72 percent of 555,000 shares on offer with corporates subscribing to 299,960 shares and individuals other than retail individual investors (RIIs) bidding for 100,000 shares.
— There seems to be a lack of interest among RIIs with bids only for 4.82 percent of the total 1.295 million equity shares on offer. The bid is open till March 26, 2010 and can be tracked live on BSE (Java required). Subscription details are also availableon NSE.

IntraSoft MD Arvind Kajaria, told CNBC-TV18 that they have recently opened up a subsidiary in Singapore to take care of the Asia-Pacific region. Interestingly, they have piloted a product called Studio to encourage creation of user generated content, e-cards: 300 developers have uploaded 800 cards in various languages besides English, which Kajaria believes will help the company expand usage.

In terms of monetization Kajaria also said that they have been testing product sales on the website, by allowing users to buy seasonal gifts and gift certificates along with the cards they are sending.

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