The initial public offer (IPO) of Matrimony.com, which runs match-making websites, got fully subscribed on the second day of bidding on Tuesday.
The initial public offer (IPO) of Matrimony.com, which runs match-making websites, got fully subscribed on the second day of bidding on Tuesday. The IPO, with an aim to raise over Rs 500 crore received bids for 30,98,820 shares against the total issue size of 28,11,280 shares, data available with the NSE showed. This implies that the issue was subscribed 1.11 times.
The company had come out with a price band of Rs 983-985 for its IPO. The company had earlier said that has allotted 22,93,277 equity shares at Rs 985 per share (including share premium of Rs 980 per share) aggregating to Rs 225. 88 crore to 10 anchor investors including Goldman Sachs, HDFC Trustee company and Baring Private Equity India AIF.
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. Matrimony.com IPO assumes significance as it will be the first company from the online matchmaking services space to be listed.
Majority of analysts recommend subscribing to the issue pointing to strengths of the company which include financial stability, leadership position in online matchmaking business, 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, communityMatrimony.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, post which it received regulatory approvals in July to go ahead with its public offering. 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.