Intel Capital, Amadeus Capital Partners and Quona Capital, which cumulatively own about 24% of IndiaMART, will partially sell their respective stakes in the initial public offering
Risk capital investors in IndiaMart InterMesh, which owns and operates small and medium businesses-focused listing platform IndiaMART, are poised to reap rich returns as the Noida-based company gears up for its initial public offering (IPO) later this month.
Intel Capital, Amadeus Capital Partners and Quona Capital, which cumulatively own about 24% of IndiaMART, will partially sell their respective stakes in the initial public offering, which is expected to take place on June 24.
The company is looking to raise about Rs 475 crore through the IPO.
“There are a total of four investors that we have on board… They are only selling as much part of their equity as was required for us to have an IPO of a certain size and scale,” Brijesh Agarwal, director at IndiaMart, told ET.
The IPO will also be the first by a venture capital-backed company since the Narendra Modi-led Bharatiya Janata Party won a convincing mandate in the national elections, results of which were declared last month.
The company, which got the nod for its IPO from markets regulator Securities and Exchange Board of India (Sebi) last September, has announced a price band of Rs 970-Rs 973 per share for the issue. The anchor allocation for the IPO, which is being managed by ICICI Securities, Edelweiss Financial Services and Jefferies India, will open on July 21.
According to a recent IPO report released by EY, Indian companies have raised $940 million through 14 initial public offerings in the first quarter of 2019, with the country’s two top exchanges – National Stock Exchange and Bombay Stock Exchange – ranked amongst the top-five globally in terms of number of public market listings.
Of the three investors selling their stakes in the IPO, Intel Capital is the longest tenured institutional investor in the company, having invested first in 2009, and putting in about $10 million. The investment firm, which is also the corporate venture capital, global investment, mergers and acquisitions arm of Intel Corp, will sell about 25.9 lakh shares, and could earn over Rs 250 crore from its investment.
Separately, Quona Capital, which has invested through its Action Frontier Inclusion fund, and holds 3.95% of the company, first invested in IndiaMART in fiscal 2016, shelling out Rs 385 per share at the time.
“We really believe in the potential of IndiaMart. Quona Capital will do a partial sale of our shareholding, and will continue to be an investor even after the IPO. We are thrilled with the financial outcome of the exit,” a spokesperson told ET in an email.
WestBridge Capital, which holds a 5.37% stake in the company, will however not sell any portion of its shareholding in the IPO. IndiaMart, in total, had raised about $22 million in funding, across rounds.