Infra.Market Lines Up 8 Investment Bankers For $700 Mn IPO

B2B ecommerce marketplace Infra.Market has reportedly lined up as many as eight investment banks to helm its $700 Mn initial public offering (IPO). 

The startup has shortlisted Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities, HSBC Securities, Motilal Oswal Financial Services and Nuvama Wealth Management as advisors for its public listing, Moneycontrol reported citing sources.

Its public issue could be in the range of $500 Mn to $700 Mn, a source was cited as saying, adding that the IPO size could increase further “depending on market conditions”. However, the deal is yet to be finalised.

“… The quantum hasn’t been finalised yet, but this is a big deal and the plan is to raise upwards of $500 Mn,” the same source reportedly added.

As per the report, the IPO will comprise a fresh issue of shares as well as secondary share sales. 

This comes a month after a report said that the company had kicked off discussions with investment banks for its $300 Mn to $400 Mn public listing. At the time, it was reported that the company was planning to deploy the proceeds from the public issue to repay the debt incurred for its organic and inorganic growth initiatives.

Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market operates a marketplace for construction products and manages the entire value chain from manufacturing to logistics. It offers a range of materials including concrete, steel, pipes, fittings, and construction chemicals. 

The startup has raised more than $415 Mn in funding till date and is backed by the likes of Tiger Global, Accel, and Nexus Ventures.

Infra.Market’s net profit declined 17% to INR 155.2 Cr in the fiscal year 2022-23 (FY23) from INR 185.9 Cr in the previous fiscal year. Operating revenue surged to INR 11,846.5 Cr during the year under review from INR 6,236.3 Cr in FY22. 

Meanwhile, the company’s subsidiary RDC Concrete is also said to be mulling a listing on the bourses next year at a valuation in the range of INR 3,500 Cr to INR 4,000 Cr.

The development comes weeks after reports surfaced that Infra.Market’s competitor OfBusiness has commenced discussions with investment bankers for an IPO by August next year. 

The developments come at a time when a slew of new-age tech companies have made their debut on the stock exchanges. So far this year, 10 Indian startups have listed on the bourses, including the likes of Unicommerce, Ola Electric, FirstCry, among others.