IndiaMART InterMESH, an online marketplace for company products and services raised an initial public offer (IPO), was fully subscribed on June 25’s second bid day.
IndiaMart’s Expectation and Results:
The IPO, which aims to raise around Rs 475 crore, received bids for 27,94,440 shares against the complete issuance size of 26,92,824 shares, which translates into 1.04 times subscription, as per the NSE information. The category was subscribed 1.05 times for skilled institutional buyers (QIBs), 4% for non-institutional investors and 2.48 times for individual retail investors.
The IndiaMart IPO: Diving into the depth
The aim of this issue of the IPO is to make use of the benefits of listing the shares on stock exchanges and for the sale offer (OFS). Notably, the business will not take advantage of the profits from this IPO, but in the problem, it will be transmitted to the selling shareholders.
The IPO, scheduled to close this Wednesday, has equity shares of 48,87,862, including anchor share of 21,95,038 equity shares. The offer price range was set at Rs 970-973 per share. IndiaMart InterMesh raised from anchor investors on Friday more than Rs 213 crore.
Being an e-commerce business, investment is predominantly into a platform that is already being built, so the company thinks that the price of the business would not increase compared to revenues leading to profitability enhancement. Because of the share buyback obligation that is over, the company has a one-time cost of Rs 65 crores in FY19.
The offer is managed by ICICI Securities Ltd, Edelweiss Financial Services Ltd and Jefferies India Pvt Ltd. The BSE and the National Stock Exchange are proposing to list the shares.
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