Matrimony.com IPO subscribed 1.36 times on Day 2
Shares in the Matrimony.com IPO were subscribed 0.83 times by institutional investors and 4.97 times by retail investors in the price band of Rs983-985 apiece
Mumbai: The initial public offering (IPO) of Matrimony.com, which runs an online match-making business under the BharatMatrimony name, was subscribed 1.36 times on Tuesday, the second day of the IPO, data from stock exchanges shows.
As of 5 pm, the portions of shares reserved for institutional investors and retail investors were subscribed 0.83 time and 4.97 times, respectively. The portion of shares reserved for non-institutional investors was subscribed only 2%.
The company has priced its shares in a range of Rs983-985 per share. The Rs500 crore IPO will close on 13 September.
The IPO is 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 proceeds from the share sale for advertising and business promotion activities, purchase of land for construction of an office in Chennai, and repayment of overdraft facilities.
On Friday, the company said it raised Rs225.8 crore by allotting shares to institutional investors as part of its anchor book allotment.
The anchor book is that portion of an IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day (working day) before the launch of an IPO and acts as an indicator of institutional investor interest.
A total of eight investors bought 2.29 million shares at the upper end of price band at Rs985 per share, according to the filing.
Till August this year, 17 companies have raised a total of Rs14,185.12 crore through IPOs, data from primary market tracker Prime Database shows.
Last week, two companies raised Rs600 crore each. They include Dixon Technologies (India) Ltd, a contract manufacturer of electronic products, which was subscribed 117.65 times on the final day and Bharat Road Network Ltd, a road and highways company, which was subscribed 1.8 times.
In 2016, the Indian primary market saw 26 companies raise Rs26,493.8 crore through the IPO route, data shows.
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