IndiaMart InterMesh IPO receives strong demand

Capital Market

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The initial public offer (IPO) of IndiaMart InterMesh received bids for 9.74 crore shares, National Stock Exchange of India (NSE) data showed. The IPO was subscribed 36.21 times.

The qualified institutional buyers (QIBs) category was subscribed 30.83 times. The non-institutional investors category was subscribed 62.13 times. The retail individual investors (RIIs) category was subscribed 14.07 times.

The issue opened for subscription on 24 June 2019 and closed on 26 June 2019. The price band for the issue was Rs 970 to Rs 973 per share.

Ahead of the opening of the IPO, the board of directors of the company at its meeting held on 21 June 2019, finalized allocation of 21.95 lakh equity shares to anchor investors at Rs 973 per share. 

The IPO comprised offer for sale of 48.88 lakh shares. It included an offer for sale of up to 33,20,753 equity shares by the investor selling shareholders, 14,30,109 equity shares by the promoter selling shareholders and 1,37,000 equity shares by the other selling shareholders. 

The objects of the issue is to get the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders.

The proceeds from the offer will be paid to selling shareholders and the company will not receive any such proceeds.

On a consolidated basis, IndiaMart InterMesh reported net profit Rs 20.04 crore on net sales to Rs 507.42 crore in the financial year ended on 31 March 2019.

IndiaMart InterMesh (IM) is India’s largest online Business-to-Business (B2B) marketplace for business products and services. IM enjoyed 60% market share in online B2B classifieds space in India in FY2017, according to KPMG report commissioned by the company.