LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Companies News

Matrimony.com IPO: Subscribe for listing gains or avoid?

The company plans to raise over Rs 500 crore by offering nearly 38 lakh equity shares. Analysts have mixed feelings on this IPO.   

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Matrimony.com IPO: Subscribe for listing gains or avoid?
Representational Image. Photo: Pixabay
Written By: ZeeBiz WebTeam
Updated: Mon, Sep 11, 2017
11:23 am
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Sensex, Nifty take a pause; Matrimony.com, Manpasand Beverage, Jet Airways stocks bleed Sensex, Nifty take a pause; Matrimony.com, Manpasand Beverage, Jet Airways stocks bleed
5 Veere Di Wedding linked stocks you should really hitch your wagon to 5 Veere Di Wedding linked stocks you should really hitch your wagon to
Matrimony.com shares fall at listing Matrimony.com shares fall at listing
Matrimony.Com, Shalby Hospitals get Sebi's nod for IPOs Matrimony.Com, Shalby Hospitals get Sebi's nod for IPOs
Key Highlights: 
  • Matrimony.Com to raise over Rs 500 crore from IPO
  • 75% for QIB, 15% is for NII and remaining 10% kept for RII
  • Matrimony.Com raised about Rs 266 crore from anchor investors

Matrimony.com's initial public offering (IPO) began on Monday. The company wants to raise over Rs 500 crore. The issue closes on September 13, 2017.

The IPO consists of fresh issue of up to Rs 130 crore and offer for sale up to 37,67,254 equity shares (including anchor portion of 2,293,277 equity shares). 

Price band has been fixed at lower end of Rs 983 per piece and upper end of Rs 985 per piece.

75% of the issue has been allotted to qualified institutional buyers (QIB), 15% to non-institutional individuals (NII) and remaining 10% has been kept for retail individual investors (RII).

Axis Capital Limited and ICICI Securities Limited are acting as book running lead managers for Matrimony's IPO issue.

From its anchor investors, Matrimony has raised nearly Rs 226 crore. About 22.93 lakh shares would be allotted to 10 anchor investors, including Goldman Sachs, Small Cap World Funds, HDFC Trustee Company and Baring Private Equity India AIF.

Yogesh Hotwani analysts at Motilal Oswal said, “At upper price band, the issue is available at PE of 48x FY17 pre issue EPS and 50.8x post issue capital. Further based on annualized EPS based on 1QFY18 earnings, issue is available at PE of 38x FY18.”

According to Motilal, the company has delivered strong earnings and has positive factors like leadership positioning in Online Matchmaking Services in India, diversification from single product online matchmaking company to marriage services provider and following Micro-market strategy and personalized services.

Between FY13 – FY17, Matrimony has witnessed revenue and EBITDA (earnings before interest tax depreciation and amortisation) growth of 12% and 39% respectively. In FY17, its profit after tax stood at Rs 43.8 crore and EBITDA margins at 20%.

Rahul Jain, Ankit Tikmany analysts at IIFL Wealth Management said, “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 duo also added, “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 subscribe for listing gains.”

Hotwani also added, "We believe the company deserves premium multiple due to leadership positioning in terms of larger client base compared to closed peers, limited competition and expected pick up in earnings post negative earning in FY14-16. Hence we recommend SUBSCRIBE to this issue for long term (10% discount to retail investors on issue price).”

However Geetanjali Kedia, analyst at Sptulsian Investment Adviser has recommended to avoid this issue due to fluctuating margins, negative networth, unconvincing issue objects and expensive valuations. 

She said, "Besides aggressive pricing, the company has offered an eye-popping 10% discount to the issue price for retail investors. In the past 12 months, no private issuer has offered any retail discount. Despite being in the business for nearly 2 decades, financial has not been achieved, which is a huge risk for any prospective investor."

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Matrimony.ComMatrimony.com IPOMatrimony.Com IPO price bandMatrimony.Com IPO issue sizeMatrimony.Com raises from anchor investorsAnchor investorsIPOinitial public offeringMarketsprimary marketsInvestmentsTechnologyIT
RELATED NEWS
Sensex, Nifty take a pause; Matrimony.com, Manpasand Beverage, Jet Airways stocks bleed Sensex, Nifty take a pause; Matrimony.com, Manpasand Beverage, Jet Airways stocks bleed
5 Veere Di Wedding linked stocks you should really hitch your wagon to 5 Veere Di Wedding linked stocks you should really hitch your wagon to
Matrimony.com shares fall at listing Matrimony.com shares fall at listing
Matrimony.Com, Shalby Hospitals get Sebi's nod for IPOs Matrimony.Com, Shalby Hospitals get Sebi's nod for IPOs

LATEST NEWS

CBSE Board Exams 2021 Latest News: Class 10 students MUST NOT MISS this LATEST UPDATE on marking scheme - check all details here

Rajasthan Schools and Colleges Closed: All educational institutions CLOSED in the state as it enters into a 15-day LOCKDOWN till May 3 - check guidelines here

WATCH: Mumbai pointsman Mayur Shelkhe who saved life of child felicitated, welcomed with claps at Central Railway office

Anil Singhvi’s Strategy April 20: Day support zone on Nifty is 14,175-14,250 & Bank Nifty is 30,725-30,800

Covid-19 vaccine registration step-by-step guide: How those above 18 years can register themselves on CoWIN official website cowin.gov.in

Apex Legends Mobile pre-registration: Will this game overtake PUBG Mobile, COD Mobile and Free Fire in India? Check here!

SIP Stock: Anil Singhvi explains why Welspun India stock is perfect for investors' portfolio

West Bengal Schools Closed Latest News 2021: Schools to stay closed from tomorrow says education minister Partha Chatterjee

LPG gas cylinder price: Get cylinder for just Rs 9? Rs 800 discount? Paytm cashback offer EXPLAINED

India to open up COVID-19 vaccines to over-18s from May 1

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved