IndiaMart InterMesh, operator of the online listing platform- Indiamart.com online, is opening its IPO for a subscription today. The issue would close on June 26. The price band has been fixed at Rs 970–973 per share for the IPO, which is completely an offer for sale. The company will offload up to 48,87,862 equity shares and is expected to raise around Rs 475 crores. IndiaMart will not receive any proceeds from the issue. Promoters Dinesh Chandra Agarwal and Brijesh Kumar Agrawal will offload 14,30,109 shares via this issue. The company’s promoters holding will reduce to 53 per cent from 58 per cent after this IPO. Other major investors Intel Capital (Mauritius), Amadeus IV DPF and Accion Frontier Inclusion Mauritius will also sell some of their stakes via this issue.
On Friday, IndiaMart InterMesh garnered about Rs 214 crores by allotting 2,195,038 equity shares at Rs 973 per share to 15 anchor investors, including ICICI Mutual Fund, HDFC Mutual Fund, SBI Mutual Fund, Birla Mutual Fund, SAIF Partners and Malabar India.IndiaMart InterMesh earns revenues from the sale of subscription packages, from the sale of request for quote or “RFQ” credits, advertising from IndiaMART desktop, mobile optimised platforms and revenue from payment facilitation services. The company has 129,589 paying subscription customers in its three different packages as on FY19. It had 82.7 million registered buyers and 5.5 million supplier storefronts in India as on FY19. Indian supplier storefronts had listed total 60.7million products. The company reported an aggregate of 723.5 million visits in FY19 out of which mobile traffic constituted 76 per cent of total traffic, Reliance Securities said in a report.
General demand slowdown for the types of products and services listed by the suppliers on IndiaMART online marketplace and higher competitive intensity are the key risks as stated by reliance Securities in its report.IndiaMart reported consistent growth in its revenue over the past three financial years. In FY17, the company’s revenue was Rs 317.8 crore, whereas in FY18 and FY19 it rose to Rs 410.51 crore and Rs 507.42 crore, respectively. It registered a loss of Rs 64 crore in FY17. In FY18, its adjusted profit after tax (PAT) stood at Rs 55 crore, while in FY19, it was Rs 20 crore.