NSE Data: Matrimony IPO Got Oversubscribed 1.36 Times On Day 2

SUMMARY

The Issue Is Off To A Good Start On Its Third And Final Day, With Shares Being Oversubscribed 1.13 Times Till 13:00 Hours

After a tepid first day, online matchmaking and marriage services provider, Matrimony, hit a homerun on the second day of its IPO. As per NSE data, the Matrimony IPO got oversubscribed 1.36 times on Tuesday, after it witnessed 67% subscription on the first day.

As of 17:00 hours yesterday, the issue received bids for 38,21,220 shares against the original size of 28,11,280 shares. NSE data shows that shares reserved for institutional investors and retail individual investors (RIIs) got subscribed 0.83 times and 4.97 times, respectively.

Of the shares reserved for non-institutional investors, including corporates and high-net-worth individuals, only around 2% got subscribed.

Till 13:00 hours today, Matrimony’s shares were oversubscribed 1.13 times, with shares for RIIs getting subscribed 3.41 times. Shares reserved for employees were subscribed 1.25 times, while that of qualified institutional buyers (QIBs) receiving bids 0.89 times.

The IPO, which will come to a close today, is expected to get listed on the Stock Exchange on September 21, 2017. Karvy Computers is currently serving as the chief registrar while ICICI Securities and Axis Bank are acting as the book running lead managers for the issue.

With the fresh issue of shares this time around, Chennai-based Matrimony is looking to raise $20.3 Mn (INR 130 Cr) against approximately 3.7 Mn shares at a price band of INR 983 – INR 985. Minimum order quantity or bid size is 15 shares, and in multiples thereof.

According to sources, around $3.1 Mn (INR 20 Cr) from the Matrimony IPO proceeds will be spent on advertising, business promotion and general corporate purposes, while $469K (INR 3 Cr) will be used to repay overdraft facilities. Of the remaining amount, about $938K (INR 6 Cr) will go into purchasing land for the construction of offices in Chennai.

Post the IPO, investor Bessemer Venture Partners will be making a complete exit from the venture. One of the other investors of BharatMatrimony, Mayfield, is also looking to sell a portion of its stake in the company.

Following the announcement of its IPO, Matrimony bagged $35.3 Mn (225.9 Cr) from a group of anchor investors, including Smallcap World Fund, HDFC Trustee Company, Baring Private Equity Asia, BNP Paribas Arbitrage, Goldman Sachs India, and DB International (Asia).

While the Matrimony IPO performed moderately on its first day, it made a comeback on the second day with the issue being oversubscribed 1.36 times, as per NSE data. Having made substantial headway already, the online matchmaking and marriage services portal will likely reach its target of $20.3 Mn by the end of the third day.