The initial public offer (IPO) of IndiaMART InterMESH (IML), was oversubscribed on its last day of bidding on June, 26, 2019.
IndiaMART InterMESH, which is the largest online B2B marketplace for business products and services, expects to raise about Rs. 475 crore from the IPO, received bids for 37,46,715 shares against the total issue size of 26,92,824 shares, translating into a subscription of 139 per cent, as per data available with the NSE.
As per KPMG, IML enjoyed approximately 60 per cent market share in online B2B classifieds space in India in FY 2017. Qualified institutional buyers (QIBs) category was subscribed 1.05 times, whereas non-institutional investors subscribed by 4 per cent and retail individual investors by 2.48 times.
The IPO is of 48,87,862 equity shares, the Price Band of which has been fixed at Rs. 970-973 per equity share. The issue size is approximately Rs. 4740–Rs. 4755 million comprising of Offer for Sale (OFS) of 4.89 million equity share. ICICI Securities, Edelweiss Financial Services and Jefferies India are managing the offer. The shares would be listed on the BSE and the National Stock Exchange.
IML derives its revenues from the sale of subscription packages, from the sale of request for quote or “RFQ” credits, advertising from IndiaMART desktop, mobile optimised platforms as well as revenue from payment facilitation services.
“The Company had 129,589 paying subscription customers in its three different packages as on FY19. IML had 82.7 million registered buyers and 5.5 million supplier storefronts in India as on FY19. Indian supplier storefronts had listed total 60.7 million products (76 per cent goods and 24 per cent services). IML reported an aggregate of 723.5 million visits in FY19 out of which mobile traffic constituted 76 per cent of total traffic,” notes an analyst at Reliance Securities in the IPO note. The IPO, which opened on Monday, June 24, 2019, closed on Wednesday, June 26, 2019.