IndiaMART InterMESH's IPO or initial public offer was subscribed 104 per cent on Tuesday, its second day of issue. Delhi-based IndiaMart InterMESH is an online marketplace and business-to-business (B2B) classifieds platform. The IndiaMART InterMESH IPO will remain open for subscription till Wednesday, June 26. The Rs 476-crore IPO of IndiaMart InterMESH comprises an offer for sale (OFS) by promoters, which means the company will not get any proceeds from public issue. The promoters' holding will be reduced to 53 per cent from 58 per cent after the issue.
Here are key things to know about the IndiaMART InterMESH IPO:
IndiaMART InterMESH subscription status
As of 5:00 pm on Tuesday, the IndiaMART InterMESH IPO received 27,94,440 bids against the total issue size of 26,92,824, marking a subscription of 104 per cent, data from the National Stock Exchange (NSE) showed.
IndiaMART InterMESH company profile
IndiaMART InterMESH enables the discovery of products across around 50 industry categories, offers lead-generation services to sellers listed on its platform and earns revenue through subscription fee.
IndiaMART InterMESH IPO issue size
IndiaMart is selling equity shares of face value of Rs 10 each in the price band of Rs 970-973 apiece between June 24 and June 26.
IndiaMART InterMESH valuation
At the upper band of the price band, the company is valued at Rs 476 crore.
IndiaMART InterMESH issue price
Investors can participate in the IndiaMART InterMesh IPO in a lot size of 15 shares.
IndiaMART InterMESH brokerage call
Brokerage Angel Broking has assigned a "neutral" rating to the IndiaMART InterMESH IPO.
It has listed the following for the company:
- Despite being the first mover, IndiaMart has not been able to monetize the full benefit, given that it has turned profitable only in FY2018
- IndiaMart has to completely depend on adding new subscriptions, as it does not get any fee from deal value
- The entry of large player (Google) having huge database poses a threat for company's growth
- Over the last 4-5 years, a couple of new ventures have come up in the online marketplace space like Ninjacart (connects farmers to retailers), Power2SME (an online wholesale raw material buying platform for SMEs) and recently entered Udan
- IndiaMart is believed to face competition in the respective fields where these have presence.
"Considering the investment concerns, we believe investors should wait for price discovery before taking any investment decision," Angel Broking said.