Initial public offerings (IPOs) seem to be the new cool thing for startups. The latest company to confirm that it’s going public is online marketplace IndiaMART, which recently filed its draft papers to market regulator Securities and Exchange Board of India (Sebi).
The Noida-based company is ready to make its IPO debut and has taken the first step in this direction by filing the draft papers. IndiaMART will offer up to 4.28 Mn shares for sale through its IPO, with its promoters and investors selling significant portions of their stakes.
Inc42 had reported in June that IndiaMART was ready to launch an IPO of $88.24 Mn (INR 600 Cr) and would soon be filing the draft papers for the listing.
In a statement, IndiaMART informed that its investors Intel Capital will sell 2.07 Mn shares, Amadeus IV DPF will sell off 1,70,502 equity shares, and Accion Frontier Inclusion Mauritius will sell 4,75,000 equity shares in the IPO. The company’s promoters, Dinesh Chandra Agarwal and Brijesh Agarwal, will sell 8,52,453 and 5,77,656 shares in the IPO.
ICICI Securities, Edelweiss Financial Services and Jefferies India are the book running lead managers in the issue.
In its draft red herring prospectus filed with the Sebi, IndiaMART said that the promoters cumulatively hold over 55% of the company while Intel Capital is the largest institutional stakeholder with a 13.47% ownership, after the completion of the conversion of compulsory convertible preference shares (CCPS).