IndiaMart Launches QIP To Raise Rs 1,100 Crore; Stock Gains
A person scrolls on a mobile phone while shopping online. (Photographer: Xaume Olleros/Bloomberg)

IndiaMart Launches QIP To Raise Rs 1,100 Crore; Stock Gains

IndiaMart InterMesh Ltd., online marketplace for business products and services, plans to raise Rs 1,100 crore by selling shares to institutional investors.

The floor price of the qualified institutional placement is fixed at Rs 9,065.61 apiece, a premium of 6% to Wednesday’s closing price, according to an exchange filing. The company at its discretion may announce a discount of 5% on the floor price.

The company’s board in its meeting on Jan. 18 had approved fundraising through the issue of equity shares or any other permissible mode.

As of Dec. 31, 2020, the company had cash and investments worth Rs 1,139 crore on its books, its investor presentation showed.

“As we see an improvement in overall demand environment and business activity, our strong value propositions, customer relationships and balance sheet make us confident of supporting businesses in their transformation to online,” Dinesh Agarwal, chief executive officer at the company, said in a statement after the third-quarter results.

Since its listing in July 2019, shares of IndiaMart InterMesh have gained more than 900% to hit a record high of Rs 9,951.95 on Feb. 5, 2021. Since then, however, the stock had dropped 10%. It was the fifth-best performer on the Nifty Smallcap in 2020, with gains of 210.1%.

Its shares on Feb. 18, 2021, gained as much as 8.7% to Rs 9,300 apiece. Of the nine analysts tracking the company, four have a ‘buy’ rating, three suggest a ‘hold’ and two recommend a ‘sell’, according to Bloomberg data. The stock is trading 23.3% higher than its 12-month consensus price target of Rs 6,986.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.