IndiaMart InterMesh IPO
What does company do?
(i) IndiaMART provides a robust two-way discovery marketplace connecting buyers and suppliers. Buyers locate suppliers on the marketplace, including both Indian small and medium enterprises, or “SMEs”, and large corporates, by viewing a webpage containing the supplier’s product and service listings, or a “supplier storefront”, or by posting requests for quotes called “RFQs” or “BuyLeads”.
(ii) The marketplace offerings from which buyers can search for and view product and service listings cover a wider range of industries spread across India, rather than relying on a single target industry or type of geography. As of March 31, 2018, we had organized our listings across 52 industries.
Background of the Company
(i) They are India’s largest online B2B marketplace for business products and services with approximately 60% market share of the online B2B classifieds space in India in fiscal 2017, according to KPMG.
(ii) They primarily operate through their product and supplier discovery marketplace, www.indiamart.com or “IndiaMART”. The online marketplace provides a platform for mostly business buyers, to discover products and services and contact the suppliers of such business products and services.
(iii) IndiaMART had an aggregate of 325.8 million and 552.6 million visits in fiscal 2017 and 2018, respectively, of which 204.8 million and 396.9 million comprised mobile traffic, or 63% and 72% of total traffic, respectively.
How they do Earn Money?
i) As we discussed earlier that they provide the market for SMEs manufacturers to find buyers on their e-platform. They offer monthly pricing schemes for the subscription packages in addition to annual and multi-year subscription models. They offer basic and premium subscription models, which include a set number of RFQ credits (depending on the level of the paid subscription package) that may be used by the suppliers. Suppliers may view sample RFQs before selecting a paid subscription package.
ii) They also charge for the leads generation on their platform.
iii) Advertising revenue
Object of the Issue
- To achieve the benefit of listing the equity shares on the Stock Exchanges and
- For the sale of an aggregate of up to 4,288,801 equity shares by the selling shareholders.
Competitive Strength of the company are
- Strong network
- A large number of listing of product and service
- Diverse industry categories
- PAN India presence
- Subscription packages and subscription-free services
- A cost-effective platform
- Robust mobile platform
Promoters of the Company
- Dinesh Chandra Agarwal
- Brijesh Agrawal
Lead Manager of the Company
- Edelweiss Capital,
- ICICI Securities,
- Jefferies India Pvt. Ltd.
Registrar of the Company
- Link Intime India Private Limited
Company Financial Performance (in INR crore)
IPO Issue Details
- Total IPO Size : INR475 crore
- Offer For Sale :4,887,862 Eq Shares
- Face Value : INR10 per share
- Retail Allocation : 10%
- Issue Type : Book Build IPO
You can contact your share broker and ask them for your allotment.
- Finalisation of Basis of Allotment : 01 June 2019
- Initiation of refunds : 02 June, 2019
- Transfer of shares to demat accounts : 03 June, 2019
- Listing Date : 04 June, 2019
- Earnings Per Share (EPS) : INR7.61
- Price/Earnings (PE ratio) : 127.46 – 127.86
- Return on Net Worth (RONW) : 12.54%
- Net Asset Value (NAV) : INR55.92 per share