- IndiaMart to becomes the first entity going for IPO during the second tenure of Modi Government.
- It will comprise of sale of 48,87,862 equity shares.
An online market place for business products and services, IndiaMart InterMesh will launch its initial public offer (IPO) from June 24 and has fixed a price band of Rs. 970-973 per share. It will become the first company to test the IPO market in Modi Government’s second tenure.
It is expected to raise about Rs. 475 crore towards the upper end of the price band. The issue is scheduled to open on 24th June and close on June 26.
The Initial Public Offering will comprise of sale of 48,87,862 equity shares via IPO reported the company.
Book running lead managers for the offer are ICICI Securities, Jefferies India, and Edelweiss Financial Services.
The shares will be listed on the Bombay Stock Exchange and National Stock Exchange, the main stock exchanges of India.
14,30,109 shares of promoters Dinesh Chandra Agarwal and Brijesh Kumar Agarwal will be sold through the issue, while Intel Capital (Mauritius), Amadeus IV DPF and Accion Frontier Inclusion Mauritius the investors in IndiaMart will offload 33,20,753 shares and 1,37,000 shares by other sharing shareholders.
Preparation of IPO
Last year on 2nd July, the Noida based firm filed draft papers with market regulatory authority SEBI for its public market debut. It’s an online business-to-business marketplace for business products and services.
IndiaMart’s CEO and co-founder Dinesh Agarwal recently said that they expect to maintain a compounded annual growth rate (CAGR) of 29 percent for the next two years, mainly on the basis of big brands joining the platform recently.
Agarwal further said, “Since last three years, our revenue has grown at CAGR of 29 percent. Similar growth should be possible this year and next year also. We will deploy the internal cash we have been generating once we get listed. We have democratized information for around 5 crore products with 47 lakh suppliers through our platform. Small and medium enterprises are on our platform. Now, we are going to focus on big brands.”
What is IndiaMart?
Started in 1996 by Dinesh and Brijesh Agrawal, IndiaMart Intermesh Ltd, is an Indian e-commerce company that provides Business-to-customer, business-to-business and customer to customer sales services via its web portal.
The business-to-business (B2B) company, which is in the process of getting listed, posted revenue of Rs 429 crore in 2017-18 and operating profit of Rs 46 crore.
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