The offer (price band: Rs 983 – 985) consists of an offer for sale (OFS) and fresh issue
Latest News – Matrimony.com Ltd (Matrimony) is one of the leading providers of online matchmaking services in India. It has two business segments – matchmaking services (96% of FY17 revenue) and marriage services (4%).
The company has one of the largest databases (3.08 million active profiles as of Jun’17) on its portal. It owns brands like Bharatmatrimony.com, EliteMatrimony.com, AssistedMatrimony.com and CommunityMatrimony.com.
The offer (price band: Rs 983 – 985) consists of an offer for sale (OFS) and fresh issue. OFS is from private equity (Rs 325 crore) and promoters (Rs 46 crore). The fresh issue of Rs 130 crore, will be used for repayment of debt (around Rs43 crore), purchase of land for office (around Rs 43 crore) and advertising (Rs 20 crore).
So, should you subscribe for Bharat Matrimony IPO? Here’s what leading brokerages suggest:
IPO proceeds are expected to be gainfully utilised leading to higher revenues from increased brand awareness and lower rentals and interest expenses. Focused expansion of its marriage services business through cross selling and assisted services could also help the company move up the value chain.
The stock is available at ~51x FY17 P/E with a 10% discount to retail investors. It may be noted that the nature of the Matrimony.com business is not comparable to that of Just Dial and Info Edge. We recommend Subscribing for listing gains… Read Full Article