IndiaMART InterMESH makes strong debut; ends 34% higher against issue price

The stock rallied up to 38 per cent to Rs 1,339 in the intra-day trade on the BSE and 37.5 per cent to Rs 1,338 on the NSE.

Shares of IndiaMART InterMESH (IML) made a strong debut on the bourses, by ending at Rs 1,303, up 34 per cent against its issue price of Rs 973 apiece on the BSE. The stock opened at Rs 1,180, a 21 per cent higher against the issue price on the National Stock Exchange (NSE) and BSE.

Post listing, the stock rallied up to 38 per cent to Rs 1,339 on the BSE and 37.5 per cent to Rs 1,338 on the NSE. A combined 8.25 million shares changed hands on the BSE and NSE on first day of listing.

The initial public offering (IPO) of IML had received a strong response with bids for 97 million shares, the exchange data showed. The IPO was subscribed 36 times. The qualified institutional buyers (QIBs) category was subscribed 31 times. The non-institutional investor’s category was subscribed 62 times. The retail individual investors (RIIs) category was subscribed 14 times.

IML is India's largest online Business-to-Business (B2B) marketplace for business products and services. IML enjoyed 60 per cent market share in online B2B classifieds space in India in FY2017, according to a KPMG report commissioned by the company.

IML primarily operates in the product and supplier discovery marketplace i.e. www.indiamart.com or “IndiaMART”.  The Company has 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.

According to KPMG, the wholesale market in India is estimated to reach US$700 billion in 2020, from US$300 billion in 2015. To tap into this potential, B2B e-commerce players have started building platforms for SMEs and traders.

“The number of SMEs buying and selling online has increased over the years with 27 per cent of the internet-enabled-SMEs being engaged in e-commerce in 2015, according to KPMG. IndiaMART targets the Indian B2B market with the objective of facilitating discovery of businesses through its online marketplace,” analysts at Reliance Securities said in an IPO preview note.

The objects of the issue was to get the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders. The proceeds from the offer will be paid to selling shareholders and the company will not receive any such proceeds.