The final day of the Matrimony IPO ended on a high note, with the issue being oversubscribed 4.41 times as of 17:00 hours yesterday. According to NSE data, the public offering of the online matchmaking and marriage services provider received bids for 12,409,980 shares against a total issue size of 2,811,280 shares.
Shares reserved for retail individual investors were subscribed 17.99 times. The subscription level of qualified institutional buyers (QIBs) stood at 1.88 times. NSE data shows that the portion of the issue set aside for non-institutional investors, like corporates and high-net-worth individuals, was subscribed 41%, as per data.
Commenting on the performance of the IPO, Matrimony founder and Managing Director Murugavel Janakiraman said, “We are indeed overwhelmed by the response to the IPO, and I would like to thank the public and all our investors for reposing confidence in the positive and unique story of Matrimony.com. I also take this opportunity to thank our associates, millions of our members and partners who supported us in the successful journey of 17 years. I’m confident that together we will deliver value for all stakeholders in the years to come.”
After a tepid first day, with around 67% subscription, Matrimony’s IPO made a comeback on Day 2 with 1.36 times oversubscription. With the fresh issue of shares, the online matchmaking portal 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.
Announced earlier this month, the IPO 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.
According to sources, around $3.1 Mn (INR 20 Cr) from the proceeds of the IPO 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 is reportedly going to make 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.
Only a few days prior to the start of the IPO, the online matchmaking platform Matrimony secured $35.3 Mn (225.9 Cr) from a cohort of anchor investors, including Smallcap World Fund, HDFC Trustee Company, Baring Private Equity Asia, BNP Paribas Arbitrage, Goldman Sachs India, and DB International (Asia).
According to a study by Prime Database, India has seen up to 20 IPOs since the beginning of this year, a major portion of which took place between June and July. Among these are IT services provider Infobeans, Ortel Communications, Mumbai-based local search service Just Dial, and Avenue Supermarts. Other companies that have issued an initial public offering are Eris Lifesciences, Info Edge, and Cochin Shipyard.
In July 2017, online automobile marketplace Droom announced plans to take the IPO route right after raising $20 Mn (INR 130 Cr) Series C round led by Integrated Asset Management and Japan’s Digital Garage. Internet-based search company Just Dial launched its IPO back in 2013. Recently, shares of the local search engine jumped 6% after HDFC Mutual Fund purchased bulk shares via a bulk deal mechanism on NSE.
In the second week of September, mobile gaming studio Nazara Technologies revealed plans to offer an IPO towards the end of FY18, making it the first public listing in the Indian gaming space.
The Indian startup ecosystem has seen a rise in the number of VC funds and active investors. While most startups currently ride on the coattails of investors, the phenomenal performance of the public offering of online matchmaking platform Matrimony will likely encourage more startups to raise funds through IPOs.