IndiaMart InterMesh, an online marketplace for business products and services, is coming with its initial public offering. Indiamart IPO opens from June 24 in the price band of Rs 970-973 per share. Indiamart IPO at the upper end of the price band intends to raise about ₹475 crore.
IPO Allotment Link
Indiamart IPO Details
| Issue ( Shares) | OFS of upto 4,887,862 Equity Shares |
| Issue Size (Rs. Cr) | Rs.475.49 Cr |
| Price Band | Rs.970 – 973 |
| Bid Lot | 15 Equity Shares |
| Employee portion | Upto 10,000 Equity Shares |
| Employee Discount | Rs.97/- per Share |
| Issue Structure : | |
| QIB | 75% of the Net offer |
| NIB | 15% of the Net offer |
| Retail | 10% ; 487,786 Shares- Rs.47.46 Cr |
| BRLMs | ICICI Securities, Edelweiss Securities, Jefferies India |
| Registrar | Link Intime India Pvt. Ltd |
About IndiaMarts
- IndiaMART InterMESH Limited (“IndiaMART”) is the India’s largest online Business-to-Business (“B2B”) marketplace for business products and services.
- It has approx. 60% market share of the online B2B classifieds space in India in fiscal 2017, according to KPMG.
- IndiaMART provides a discovery marketplace connecting buyers and suppliers.
- As of March 31, 2019, IndiaMART had organized their listings across 54 industries.
- As of March 31, 2019, they had 8.27 crore registered buyers
- IndiaMART had an aggregate of 72.35 crore visits in 2019.
IndiaMart InterMesh: Financials
| (Rs. In Cr) | 2019 | 2018 | 2017 |
| Revenue | 507.42 | 410.51 | 317.76 |
| Revenue Growth (%) | 23.61% | 29.19% | – |
| EBITDA | 82.34 | 46.32 | -54.41 |
| EBITDA (%) | 16.00% | 11.00% | -17.00% |
| Profit Before Tax | 53.92 | -60.1 | -64.14 |
| Profit After Tax | 20.04 | 54.76~ | -64.35 |
| Net profit /Revenue % | 3.95% | 13.34% | -20.25% |
| Equity Share Capital | 28.59 | 9.98 | 9.17 |
| Reserves | 131.3 | -331.25 | -399.22 |
| Net worth | 159.89 | -321.27 | -390.05 |
| FV | 10 | ||
| EPS (Rs.) | 7.75 | 28.6 | -35.09 |
| RONW(%) | 12.54% | 17.04% | -16.50% |
| NAV | 55.92 | -322.02 | -425.4 |
| Equity Post issue | 28.77 | ||
| EPS Post Issue | 6.97 | ||
| IPO price | 973.00 | ||
| PE Post Issue | 140 |
Indiamart IPO: Assessment
- IPO is small size with only 10% being offed to Retail Investors.
- Indiamart has a dominant position in offering a B2B online trading platform to MSMEs. It enjoyed 60% market share in online B2B classifieds space in India in FY2017, according to KPMG
- Intel Capital (Mauritius), Amadeus IV DPF and Accion Frontier Inclusion Mauritius are partly offloading a portion of their holdings through this issue.
- IndiaMart will not receive any proceeds from the issue.
- IndiaMart surplus cash on hand stands at Rs. 685 crore. It derives subscription based revenue from paid suppliers.
- The management has stated that reported profits are lower due to tax provisions coupled with one time FVTPL( fair value through profit or loss) adjustments and ESOP.
- Indiamart IPO is commanding GMP of about Rs. 100/- and subject to application price of Rs. 1400.
- IndianMart IPO could garner good support from FIIs.
- Based on P/E, IndiaMart IPO has been priced aggressively.
- At this point of time I expect moderate to good subscription from FIIs to the issue and based on their response to the issue, I intend to apply in IndiaMart IPO.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering and Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.