Indiamart IPO Has Launched: 5 Things Every Investor Should Know (#5 Is About ‘Logic’)

India’s largest online B2B marketplace for business products and services, IndiaMart InterMesh has announced to offer shares to the public through its Rs 475 crore IPO and has opened the subscription from June 24 to 26. It aims to raise Rs 475 crore through this and would be offloading a total of 1.4 million shares.

The company will offer a total of 4.88 million shares of face value of Rs 10 each at a price of Rs 970-973 per piece.

IndiaMart’s 475 Crore IPO

Delhi-based IndiaMart InterMESH is India’s biggest online B2B marketplace for small and medium businesses, where companies can discover products across 50 industry categories. Last fiscal year, the count of sellers registered with the online platform showed an increase to 55 lakh. The company is offering shares to the public, worth ?970–973 per share through its ?475 crore IPO.

Not only is the company offloading 1.4 million shares, its big investors like Intel Capital, Amadeus Capital Partners and Quona Capital too are offloading some of their holdings through this issue.

IndiaMart has already raised more than Rs 213 crore, a day before opening the issue, through its anchor investors for building a trustworthy financial repo, like ICICI Mutual Fund and HDFC Mutual Fund to name a few. The issue size at the upper band of the price band values the company at Rs. 476 crore.

Major Things to Keep in Mind While Subscribing:

IndiaMART InterMESH is India’s largest online B2B marketplace for business products and services and holds about 60% of the market share.

  • With its growing number of registered buyers, climbing up to 55 lakh, the growing penetration of internet and online marketing has given IndiaMart an upperhand and thus can help companies to reach out to a larger customer base.
  • It is the 1st company to test the IPO market. Despite this fact, IndiaMart hasn’t turned its heavy monetization into full benefit, as it just gained this profit last year.
  • The entry of large players like Google, could possibly pose a threat for small and medium companies’ growth.
  • In past some years, new companies have entered this business, like Ninjacart, Power2SME. These new ventures can give a strong competition to IndiaMart.
  • The path taken by IndiaMart here should be thoroughly looked into. Considering growth, accompanied with dominant market position and expected benefits, such technological and scalable business model companies could enhance the future market potential and improve the management to work towards achieving the potential

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