Info Edge IPO signals dotcom comeback

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Mumbai, Oct 25: In a throwback to the dotcom heydays, internet firm Info Edge (India) Ltd, which owns the popular job portal naukri.com, is coming out with an IPO to raise Rs 154 crore - Rs 170 crore through the book built route. The offer, representing 19.5% of the expanded capital of the firm, is the first dotcom play to enter the Indian market not counting brokerages such as Indiabulls and India Infoline that started primarily as online ventures.

Globally, it is the first Indian Internet firm to go public after the Internet bubble in 2000 when Rediff.com and Sify went public on the Nasdaq. However, unlike most dotcoms in that era, which were loss making, Info Edge is a profitable company.

In fiscal 2006, it clocked revenues of Rs 84.1 crore and a net profit of Rs 13.3 crore. It has been profitable for the last four years. Well-known Silicon Valley venture capitalist, Kleiner Perkins is an investor in the firm along with Sherpalo Ventures, backed by Google's Ram Shriram. “Worldwide we have seen a revival of dotcom and tech companies. The market in India is also much more open to such issues now,” said Pradip Shah of Indasia Fund Advisors.