Mumbai: IndiaMART InterMESH Ltd, which operates Indiamart.com, one of the largest online listing platforms for small and medium businesses in India, is set to become the first company to test the IPO market in the Modi government’s second tenure.
The company is planning to launch its initial public offering in the week of 24 June, aiming to raise around Rs500 crore, a person aware of the company’s plans said.
Indiamart’s IPO will also see three of its private equity and venture capital investors make a part exit from the company. Investors selling shares through the IPO include Intel Capital, Amadeus Capital Partners and Quona Capital, according to the draft red herring prospectus (DRHP) filed by the company.
The planned timeline makes Indiamart the first company to hit the primary markets with a public offering since the government returned to power.
The first five year term of Prime Minister Modi witnessed 118 IPOs, which collectively raised ₹1.44 trillion from investors, according to primary market tracker Prime Database.
ICICI Securities, Edelweiss Financial Services and Jefferies are managing the Indiamart initial share sale.
Indiamart’s online marketplace provides a platform for mostly business buyers, to discover products and services and contact the suppliers of such business products and services. As of 31 March 2018, the company had 59.81 million registered buyers and 4.72 million suppliers. These suppliers had listed 50.13 million products, of which 75% of goods comprised products and 25% were services, according to the DRHP.
The company’s operating revenue increased to Rs403.5 crore in fiscal 2018 from Rs308.6 crore in the previous year. However, losses widened to Rs72.4 crore in fiscal 2018 against a loss of Rs13 crore in the previous financial year.