Matchmaking and marriage services company Matrimony.com Ltd.’s Rs 501-crore initial public offering, which opened on Monday, was subscribed 0.67 times, on the first day of the bidding.
The public issue received bids for 18.78 lakh shares as against the total issue size of 18.08 lakh shares as of 5:00 pm, according to data shared by Axis Capital, one of the lead bankers.
The shares set aside for qualified institutional buyers (QIBs) was subscribed 0.83 times while the portion allocated to retail investors was subscribed 1.19 times. The quota for non-institutional investors and employees saw no demand.
The company on Friday raised Rs 225.88 crore from ten anchor investors at the upper end of the price band which has been set at Rs 983-985.
Matrimony.com will dedicate nearly 15 percent of the proceeds from the fresh issue for advertisements and promotions. The overall funds raised via the IPO will also be used for purchase of assets, debt repayment and for general corporate purposes.
The offer, which will remain open for another two days, is a combination of fresh issue and offer for sale. Promoters Murugavel Janakiraman and Indrani Janakiraman, and three investors are looking to sell 37.7 lakh equity shares, or Rs 371 crore at the upper end of the price band, while 13.2 lakh equity shares worth Rs 130 crore will be in the form of fresh issuance.
The IPO will allow investors like Bessemer India Capital and Mayfield, to make at least three times its investment in six years after it first picked up stake in the company. Bessemer India Capital and Mayfield invested in Matrimony at an average price of Rs 308 and Rs 230.5 per share. Axis Capital Ltd. and ICICI Securities Ltd. are the book running lead managers to the issue.
Matrimony.com counts shaadi.com and Jeevansathi as its rivals in the online matchmaking industry.