Matrimony.com IPO a huge hit, subscribed 441% on last day
BT Online September 14, 2017
Matrimony.com initial public offer (IPO) has been subscribed 441% on the last day of the issue on Wednesday.
The Rs 500-crore IPO of online match-making portal received bids for 1,24,09,980 shares against the total issue size of 28,11,280 shares, data available with the NSE showed.
The category reserved for qualified institutional buyers (QIBs) was oversubscribed 1.88 times, non institutional investors 41 per cent and retail individual investors 17.99 times.
The company had on Friday raised nearly Rs 226 crore from anchor investors. The price band is Rs 983-985 per share for the IPO. It comprises fresh issue aggregating up to Rs 130 crore and an offer for sale of up to 37.67 lakh equity shares. At the upper end of the price band, the company is being valued at about Rs 2,225 crore.
Till Wednesday, the IPO was subscribed 1.36 times and received bids for 38,21,220 shares against the total issue size of 28,11,280 shares.
Matrimony.com runs online match-making business under the BharatMatrimony brand.
Net proceeds from the issue will be utilised towards advertising and business promotion activities, purchase of land for construction of office premises in Chennai, repayment of overdraft facilities and general corporate purposes.
Axis Capital and ICICI Securities are the book running lead managers to the offer. The registrar to the offer is Karvy Computershare Pvt Ltd.
Matrimony.com's online competitors are Shaadi.com and Jeevansathi.com, and key offline competitors include traditional brick and mortar companies offering marriage bureau and matchmaking services as well as community associations.
The firm had negative net worth of Rs 3113.2 crore as of March 31, 2017. The firm also restated losses in three of the past five fiscal years. For example, it sustained restated consolidated losses of Rs 915.9 crore, Rs 292.9 crore and Rs 7506.9 crore in fiscal 2014, fiscal 2015 and fiscal 2016, respectively.
As of April 15, 2017, BharatMatrimony mobile app and apps for regional and community sites have achieved 5.8 million estimated installs according to www.androidrank.org. A significant number of its members currently utilise mobile sites and mobile apps to access online matchmaking services.