Sebi seeks clarification on Matrimony.com IPO

The Securities and Exchange Board of India (Sebi) has sought clarification on the proposed Rs 600-700 crore initial public offer (IPO) of Matrimony.com, which runs online match making business under BharatMatrimony brand.

Without disclosing details, Sebi has said "clarifications (are) awaited from lead manager for the proposed public issue" as on September 18. The next update from the market regulator on the issue would be available on September 28.

The regulator had received the draft offer documents on August 18 this year through its lead manager Kotak Mahindra Capital Company.

According to the draft red herring prospectus (DRHP), the IPO comprises fresh issue of equity shares worth Rs 350 crore and an offer for sale of up to 16.60 lakh scrips by existing shareholders.

The existing investors include Bessemer India Capital Holdings, Draper Investment Company LLC, Hartenbaum Revocable Trust and Indrani Janakiraman.

Sebi said it might issue observations on Matrimony.com's IPO document within 30 days from the date of receipt of satisfactory reply to the clarification or additional information sought from the lead merchant bankers.

According to sources, the company is expected to garner Rs 600-700 crore through the public offer.

This would be the second major IPO by an Internet company after Just Dial. The local search engine firm had raked in Rs 950 crore through its public offer in 2013.

Matrimony.com would use the funds for business promotion, purchase and development of office premises in Chennai, repayment of overdraft facilities and procurement of hardware and software requirements for a centrally controlled contact centre and general corporate purposes.

The company competes with Shaadi.com, Times Group's SimplyMarry.com and Info Edge-owned Jeevansaathi.com.