Matrimony.Com files papers to raise Rs 600-700 cr via IPO

Matrimony.Com, which runs online match making business under 'BharatMatrimony' brand, today filed draft papers with markets regulator Sebi to raise an estimated Rs 600-700 crore through an initial public offer (IPO).
The IPO comprises fresh issue of equity shares worth Rs 350 crore and an offer for sale of up to 16.60 lakh scrips by existing shareholders.
The existing investors include Bessemer India Capital Holdings, Draper Investment Company LLC, Hartenbaum Revocable Trust and Indrani Janakiraman.
According to sources, the company is expected to garner Rs 600-700 crore through the public offer.
This would be the second major IPO by an internet company after Just Dial. The local search engine firm had raked in Rs 950 crore through its public offer in 2013.

The funds would be used for business promotion, purchase and development of office premises in Chennai, repayment of overdraft facilities and procurement of hardware and software requirements for a centrally controlled contact centre and general corporate purposes.

Kotak Mahindra Capital Company, Citigroup Global Markets India and Deutsche Equities India are the book running lead managers to the issue.
Matrimony competes with portals like Shaadi.Com, Times Group's SimplyMarry.Com and Info Edge-owned Jeevansaathi.Com.
At the end of financial year 2014-15, the company had generated consolidated revenue of Rs 242.84 crore and an operating profit of Rs 17.80 crore.
In addition, the company had a database of profiles comprising 2.65 million active profiles.

After a quiet year, IPO market is buzzing again as 25 companies have approached Sebi to float the IPOs since the beginning of 2015 and many others are in the process to file their initial papers.
Few forthcoming IPOs are InterGlobe Aviation, which runs budget carrier IndiGo, Coffee Day Enterprises and RBL Bank (formerly known as Ratnakar Bank).
So far in 2015, 10 companies have mobilised about Rs 4,700 crore through IPOs, higher than funds raised in the preceding two years.
In comparison, a total of six IPOs had hit the market in 2014 and together garnered just Rs 1,261 crore while in 2013, three companies raked in Rs 1,284 crore through initial share sale plans.