IndiaMART InterMESH hits highest level since listing, zooms 51% in 3 weeks | Business Standard

Business Standard

The company had raised Rs 475-crore through initial public offering by issuing shares at Rs 973 per share

Shares of IndiaMART InterMESH were trading higher for the fifth straight day, up 3 per cent at Rs 1,739 on the BSE on Wednesday. The stock was quoting at its highest level since listing on July 4, 2019.

In past three weeks, the stock of India’s largest online business-to-business marketplace has zoomed 51 per cent from level of Rs 1,155, as compared to 2.5 per cent decline in the S&P BSE Sensex during the same period. The company had raised Rs 475-crore through initial public offering by issuing shares at Rs 973 per share.

Earlier this month, IndiaMART, along with the participation of existing investors India Quotient and Axilor, had invested Rs 36 crore in Vyapar, a mobile-based business accounting software for small businesses.

‘Vyapar’ is an invoice accounting and stock inventory app with 1 million+ downloads and 4.6 app rating on google play store. Small and Medium businesses can use their app or desktop version for billing Goods and Services Tax (GST) invoices, managing stock inventory and accounting solutions.

On September 11, the Bombay Stock Exchange (BSE) sought an explanation from IndiaMart over sharp rally in market price, to which the company said it wasn’t aware of any specific reasons that may have resulted in the recent rise in the price and that such movement is purely market driven.

For first quarter (April-June) of financial year 2019-20, IndiaMART had reported consolidated net profit of Rs 32 crore against net loss of Rs 56 crore during same quarter last fiscal.

Consolidated revenue from operations grew by 30 per cent on year on year basis to Rs 147 crore due to increase in number of paying subscribers as well as higher realization from existing customers. Earnings before interest, tax, depreciation and amortization (Ebitda) margin more than doubled to 25 per cent from 11 per cent in previous year quarter.

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