The initial public offer (IPO) of Matrimony.com, which runs match-making websites, was subscribed 67% on the first day of bidding on Monday. The IPO, with an aim to raise over Rs 500 crore, received bids for 18,78,510 shares against the total issue size of 28,11,280 shares, data available with the NSE showed. The qualified institutional buyer’s bid for 0.83 times of the shares allotted to them. High-net-worth individuals bid for 3,120 shares of the 7.64 lakh shares reserved for them. Retail investors bid for nearly 1.19 times or 6.07 lakh shares of the 5.09 lakh shares reserved. The three-day IPO will close on September 13. The anchor investors will be allotted shares on September 8. Bids can be made for a minimum of 15 shares and multiples of 15 thereof. The issue will comprise of a fresh issue worth Rs 130 crore and an offer for sale of 37.67 lakh shares. The company plans to use the proceeds of the fresh issue for advertising and business promotion activities, purchase of land for construction of office premises, repayment of over draft facilities and general corporate purposes. The company will not receive any proceeds from the offer for sale.
The company is engaged in matchmaking services and marriage services. The company delivers matchmaking services to its users in India and the Indian diaspora through their websites, mobile sites, and mobile apps. The company had 7.02 lakh paid subscriptions during the financial year 2017. The company posted a net profit of Rs 14.6 crore for the three-month ended June 30, 2017, against Rs 9.5 crore during the same period a year before.
In 2017, companies raised Rs 16,254 crore through IPOs. Listing gains and returns by newly listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend. BSE, HUDCO, CDSL, Avenue Supermarts, Shankara Building Products, S Chand and Company, and Cochin Shipyard are some of the companies who completed their IPOs in the last eight months. The newly listed companies have given good returns to investors, the BSE IPO index a gauge of newly listed companies rose by 45% year to date, against Sensex’s gain of 19.7% during the same period.