IndiaMart InterMesh Ltd, the owner and operator of Indiamart.com, has launched its 475 crore initial public offering (IPO). The issue opens today, i.e. 24 June, and will close on 26 June. Indiamart.com is an online business-to-business marketplace for business products and services. There is no listed entity in India comparable to the business profile of IndiaMART, which has got the investors all excited about this IPO. If you are planning to put in money in this offer, here’s everything you should know:
1. IndiaMart has set a price band of Rs 970-973 per share. Bids can be made for minimum 15 equity shares and in multiples of 15 shares thereafter.
2. The IPO is an offer for sale (OFS) by promoters and investors and will put on table a total of 4.88 million equity shares of face value of Rs 10 each.
3. Existing investors including Intel Capital (Mauritius) Ltd, Amadeus IV DPF Ltd and Accion Frontier Inclusion Mauritius will together offload around 3.32 million shares.
4. Promoters Dinesh Chandra Agarwal and Brijesh Kumar Agrawal will sell around 1.43 million shares, while 137,000 shares will be sold by other selling shareholders.
5. Since it’s an OFS, the company will not receive any proceeds from the offer. The entire proceeds will go to the selling parties in proportion to the equity shares sold by them during the offer.
6. IndiaMart has reserved 10,000 shares for eligible employees and will offer them a discount of Rs 97 per share during the IPO.
7. From the balance issue, IndiaMart has allocated 75% of the issue for qualified institutional buyers (QIBs), 15% for non-institutional bidders and 10% for retail investors.
8. The promoter holds 57.58% stake in the company and, post-IPO, this will come down to 52.61%. The public holding will increase from current 42.42% to 47.39%.
9. The shares are expected to start trading on both BSE and NSE on 4 July 2019
10. Research firm Choice Equity has come out with its report on IndiaMART InterMESH, recommending to “subscribe” the IPO. It said in its report: “Considering the growth outlook coupled with dominant market position and expected benefit from the operating leverage, we feel that the future benefits outweigh the target share price derived from various traditional valuation multiples.”
11. The book running lead managers to the public issue are ICICI Securities Ltd, Edelweiss Financial Services Ltd and Jefferies India Pvt. Ltd.