IndiaMART files IPO draft, plans to offer up to 4.28 million shares

Economic Times

NEW DELHI: IndiaMART, a marketplace focused on small and medium enterprises, filed the draft papers for its public market debut with the regulator on Monday, making it the most recent instance of a venture capital-backed company opting to test the country’s capital markets.

The Noida-headquartered company will offer up to 4.28 million shares through its offer for sale, with its promoters and investors selling a portion of their stakes in the 23-year-old venture in the issue.

According to a statement issued by the company, Intel Capital will sell 2.07 million shares, while Amadeus IV DPF, an investment unit of Amadeus Capital, and Accion Frontier Inclusion Mauritius, will sell 1,70,502 and 4,75,000 equity shares, respectively.

Additionally, promoters Dinesh Chandra Agarwal and Brijesh Agarwal will offer 8,52,453 and 5,77,656 shares in the IPO.

ICICI Securities, Edelweiss Financial Services and Jefferies India are the book running lead managers to the issue, the press release said.

The promoters cumulatively hold over 55% of the company, while Intel Capital is the largest institutional stakeholder with a 13.47% ownership, after the completion of conversion of CCPS, the company stated in its draft red herring prospectus filed with the Securities and Exchange Board of India.

The Times Group, which publishes The Economic Times, is also an investor in the company.

IndiaMART’s upcoming IPO will be the latest by a venture capitalbacked company in India over the past 18 months. The year 2017 saw online marriage services provider BharatMatrimony, ecommerce company Infibeam and security software provider Quick Heal Technologies hitting the capital markets.

In 2018, homegrown product technology company Newgen Software’s IPO was subscribed eight times on the third and final day of its public market debut, in the process, providing its three risk capital backers with stellar exits.