1. Matrimony.com fails to make a match with stock market on debut, shares plunge over 8% on listing

Matrimony.com fails to make a match with stock market on debut, shares plunge over 8% on listing

Shares Matrimony.com dipped over 8% on NSE as the company debut's on the stock market on Thursday.

By: | Published: September 21, 2017 12:00 PM
The stock of Matrimony.com fell as much as 8.8% to the day’s low of Rs 898.25 from its listing price of Rs 985 on NSE. (Image: Reuters)

Shares Matrimony.com dipped over 8% on NSE as the company debut’s on the stock market on Thursday. Matrimony.com, which runs the online matchmaking website BharatMatrimony.com, launched its Rs 500 IPO on 11 September. The matchmaking company Matrimony.com shares got listed at a price of Rs 985. The stock of Matrimony.com fell as much as 8.8% to the day’s low of Rs 898.25 from its listing price of Rs 985, however, it dived 12.24% at Rs 898.25 from its all-time high of Rs 1024. Later, shares of Matrimony.com recovered partially but still trading 4.5% lower at Rs 940.9.

The public offer of Matrimony.com comprised of a fresh issue of up to Rs 130 crore and an offer for sale (OFS) of up to 37,67,254 shares. The OFS consists of up to 14,61,006 shares by Bessemer India Capital Holdings II Ltd, 1,55,760 by Mayfield XII, Mauritius, 16,83,207 by CMDB II, 3,84,447 by Murugavel Janakiraman and 82,834 by Indrani Janakiraman. Proceeds of the issue will be utilised for advertising and business promotion activities, purchase of land for construction of office premises in Chennai, repayment of overdraft facilities and general corporate purposes.

Matrimony.com is the first company from the online matchmaking services space to be listed on the stock exchange. Hence, analysts expect high demand for the issue and also expect a lot of new investors to come forth. Majority of analysts recommend subscribing to the issue pointing to strengths of the company which include, financial stability, leadership position in online matchmaking business, a large potential in matchmaking services space and unique business model.

Matrimony.com was launched in 2001 to provide online matchmaking and marriage services. According to their website, the company has over 3,500 employees at 140 branches across India. The company operates multiple portals such as BharatMatrimony.com, community Matrimony.com, and EliteMatrimony.com. Matrimony had filed its draft IPO papers in August 2015. However, the company did not go ahead with the plan. It re-filed the draft papers in May this year, after which it received regulatory approvals in July to go ahead with its public offering.

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