IndiaMART IPO opens today
The initial public offering (IPO) of IndiaMART InterMESH, India's largest online business-to-business (B2B) marketplace for business products and services opens from today. To put simply, the company is offering shares to the public through its ₹475 crore IPO, which opens for subscription today.
The IPO opening that begins today, will be closed on June 26.
The price band for the secondary issue consisting of entirely an offer for sale of 48,87,862 shares is Rs 970-973 and would garner Rs 475 crore.
The company is in the business of online B2B marketplace for business products and services. The revenue model is from subscription fee paid by sellers.
The growth in revenue from paying subscribers is 19.68 per cent. The total revenue was Rs 548.4 crore in the year ended March 2019.
The company has deferred revenue of Rs 586 crore which is revenue received in advance from subscription. This would typically get adjusted in 20 months.
The EBITDA for March 2019 was Rs 82.3 crore. The company is debt-free and has substantial cash holdings. The issue is likely to do well and would have listing gains. This incidentally would be the first IPO in Modi 2.0 regime.
Promoters Dinesh Chandra Agarwal and Brijesh Kumar Agrawal will sell 14,30,109 shares through the issue, while investors Intel Capital (Mauritius), Amadeus IV DPF and Accion Frontier Inclusion Mauritius will offload 33,20,753 shares and 1,37,000 equity shares by other selling shareholders, IndiaMART InterMESH said.
ICICI Securities, Edelweiss Financial Services and Jefferies India are the book running lead manager to the offer, it said.
The equity shares of IndiaMart InterMesh are proposed to be listed on the BSE and the National Stock Exchange.
Markets are unsure of what the budget holds for them. While people hope that many things would happen in the budget, they are not sure of what would be the focus area this time around.
While priority is kick-starting the economy, what measures would be announced for the same are yet unknown. Markets would continue to be volatile in the week ahead and see sharp intra-day moves while the level of 11,700 or thereabouts would act as a pivot.
