BharatMatrimony.com parent may launch Rs500 crore IPO in September
Mumbai: Popular matchmaking website BharatMatrimony.com’s parent company, Matrimony.com Ltd, is planning to go public in the first half of September, said three people aware of the development.
The proposed Matrimony.com initial public offering (IPO) is expected to be worth around Rs500 crore, they said.
Matrimony’s business comprises two segments—matchmaking services and marriage services. The company operates multiple portals such as BharatMatrimony.com, CommunityMatrimony.com and EliteMatrimony.com.
Matrimony’s IPO will mark yet another technology or internet IPO in the Indian market, which has seen just a handful of such companies go public.
Last year, e-commerce firm Infibeam Inc. Ltd went public in a Rs450 crore IPO, which was subscribed 1.1 times. Also last year, anti-virus software maker Quick Heal Technologies raised Rs451 crore through its IPO. Earlier this year, Internet and telecom infrastructure original equipment maker Tejas Networks Ltd went public.
Earlier instances of technology firms going public in India include the likes of Just Dial Ltd and Info Edge (India) Ltd, while firms such as travel portal MakeMyTrip opted to list in the US.
For Matrimony.com this is the second attempt at going public in recent times. It had first filed its draft IPO papers in August 2015, but did not go ahead with the share sale then. The company re-filed its draft papers in May this year, post which it received regulatory approvals in July to go ahead with its public offering.
“Matrimony.com has finished its investor road shows and they are looking to launch the public offer soon, in the first half of September, most likely in the second week. There has been a strong response to the company’s road shows, so demand for the share sale should not be a problem,” said one of the three people cited above, requesting anonymity as he is not authorized to speak to reporters.
Matrimony.com will file its red herring prospectus with the regulators next week, he said. “The price band is under final discussions between the board and the bankers and should be finalized early next week,” he added.
Matrimony.com declined to comment on queries relating to its IPO launch plans.
The latest attempt by the company to go public consists of a fresh issue of shares aggregating up to Rs130 crore and an offer for sale of up to 3.7 million shares. The offer for sale will see Matrimony’s investor Bessemer Venture Partners make a complete exit from the company, while Mayfield will sell part of its stake.
Matrimony.com will use the share sale proceeds for advertising and business promotion activities, purchase of land for construction of an office in Chennai, and repayment of overdraft facilities.
As per the firm’s draft share sale documents, as of 31 March, it had a database of 3.03 million active profiles. In the financial years 2015, 2016 and 2017, the firm had 647,000, 678,000 and 702,000 paid subscriptions, respectively.
Matrimony.com reported consolidated revenue of Rs292.93 crore in 2016-17, of which Rs280.7 crore came from its matchmaking services. It had a profit of Rs43.7 crore in 2016-17, as against a loss of Rs75 crore a year earlier.