The shares of Chennai-based software startup Freshworks rose 32% on Wednesday on New York-based stock market Nasdaq after it raised $1 billion (nearly Rs 7,370 crore) in its initial public offering, or IPO, reported Bloomberg.
The company got listed on Nasdaq at $36 (approximately Rs 2,653) per share on Wednesday. At closing of trading, the shares of the company were priced at $47.55 (about Rs 3,505).
An IPO is a process in which private companies offer shares to the public through issuance of new stocks. At the end of the IPO process, the company gets listed on the stock exchange and is allowed to raise capital from public investors.
The company’s stock had opened higher at at $43.50 (around Rs 3,206) than its initial listing price, reported News18. During the training, the stock’s price had risen to $46.24 (approximately Rs 3,408).
“Today is a dream come true for me – from humble beginnings in Tiruchirappalli to ringing the bell at Nasdaq for the FreshWorks IPO,” Freshworks Chief Executive Officer and founder Girish Mathrubootham said in a tweet on Wednesday. “Thank you to our employees, customers, partners, and investors for believing in this dream.”
Venture capital firm Accel India and investment company Tiger Global Management each control more than 25% the company’s stakes. The company has around 52,500 customers.
Last year, Freshworks had seen a rise in its revenue by 40% after the coronavirus pandemic prompted businesses to go digital.