Intel Capital-backed Indiamart set to launch IPO this month

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IndiaMART InterMESH Ltd, which operates, one of the largest online listing platforms for small and medium businesses in India, is set to become the first company to test the IPO market in Modi government’s second tenure.

The company is planning to launch its initial public offering on 24 June to raise around ₹600-650 crore, a person aware of the company’s plans said. Indiamart will announce the price range for the public offering tomorrow.

Indiamart’s IPO will also see three of its private equity and venture capital investors make a part exit from the company. Investors selling shares through the IPO include Intel Capital, Amadeus Capital Partners and Accion, according to the draft red herring prospectus (DRHP) filed by the company.

The first five-year term of Prime Minister Narendra Modi witnessed 118 IPOs, which collectively raised ₹1.44 trillion from investors, according to data from primary market tracker Prime Database.

ICICI Securities, Edelweiss Financial Services and Jefferies are managing the Indiamart initial share sale.

Indiamart’s online marketplace provides a platform for mostly business buyers to discover products and services and contact the suppliers. As of 31 March 2018, the company had 59.81 million registered buyers and 4.72 million suppliers. These suppliers had listed 50.13 million products, of which 75% of goods comprised products and 25% were services, according to the DRHP.

The company’s operating revenue increased to ₹403.5 crore in fiscal 2018 from ₹308.6 crore in the previous year. However, losses widened to ₹72.4 crore in fiscal 2018 against a loss of ₹13 crore in the previous financial year.

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