Matrimony.com To Make Its Stock Market Debut Today
Matrimony.com raised Rs 501 crore from IPO.
Online matchmaker Matrimony.com will list on exchanges on Thursday after raising Rs 501 crore in its initial public offering, most of which will go to promoters.
The company sold 51 lakh shares at Rs 985 apiece in the IPO that was subscribed 4.44 times. It raised Rs 371 crore in an offer for sale by two promoters and three investors, including Bessemer India Capital and Mayfield invested. The rest came through a fresh issue.
Axis Capital Ltd. and ICICI Securities Ltd. were the book running lead managers to the issue.
Qualified institutional buyers and high net worth individuals put in bids for 1.88 and 0.41 times the shares on offer, respectively. The portion reserved for retail buyers was subscribed 18.16 times. At the issue price, Matrimony will command a market capitalisation of more than Rs 2,200 crore, according to BloombergQuint’s calculations.
The company will use nearly 15 percent of the proceeds from the fresh issue for advertisements and promotions. Funds raised via the IPO will also be used for buying assets, debt repayment and for general corporate purposes.
Financial Highlights
- Consolidated net worth of the company stood at negative Rs 16 crore as of June 30, 2017.
- Consolidated revenue grew at a compounded annual growth rate of 12 percent, while the earnings before interest, tax and depreciation and amortisation grew at 38 percent over the past five years. For the June ended quarter, revenue and EBITDA stood at Rs 84 crore and Rs 20 crore, respectively.
- The company made losses in three year to March 2016, burdened with a $8 million setback in lawsuits. It reported a profit of Rs 44 crore in the year ended March 2017 and Rs 15 crore for the June quarter.
- It has a no long-term debt; short term debt stood at Rs 122 crore as of June 30, 2017.
- The annualised earnings per share for financial year 2017-18 stands at Rs 26, after issuing fresh shares. The price-to-earnings ratio at the upper end of the price band is 38.1 times, according to data compiled by BloombergQuint.
Peer Comparison
The top three online matchmakers in India include:
- Matrimony.com
- Shaadi.com
- Jeevansathi
Matrimony.com dominates south India and also caters to non-resident Indians from the southern states. Shaadi leads in Gujarat and Punjab, and Jeevansathi leads certain North Indian communities and states. There is also some overlap.
Info Edge India Ltd., the parent of Jeevansathi, is the only listed peer of Matrimony.com. Info Edge also runs websites like naukri.com, 99acres, Zomato, Policybazaar and shiksha.
Jeevansathi is still making losses, while matrimony.com reported a profit of Rs 44 crore and Rs 15 crore year to March and the three months ended June, respectively.
Info Edge has a more stable balance sheet compared to matrimony.com because of its diversified portfolio. The latter is available at a cheaper valuation compared to Jeevansathi’s parent.
The offer allowed investors like Bessemer India Capital and Mayfield to make at least three times their investment in six years after first picking up stake in the company. Bessemer India Capital and Mayfield invested in Matrimony at an average price of Rs 308 and Rs 230.5 apiece.