Matrimony.com shares fall at listing
The company has touched a 52-week high of Rs 1024 per piece and low of Rs 949.10 per piece on stock exchanges.
Online match-making services provider Matrimony.com on Thursday listed at Rs 985 per share.
At 1026 hours, the share price of Matrimony has tumbled over Rs 55 or 5.61% trading at Rs 929.75 per piece on Nifty.
So far, the company has touched a 52-week high of Rs 1024 per piece and low of Rs 949.10 per piece on stock exchanges.
This scrip has been included in the list of ‘B’ Group of securities on BSE.
On September 11, the company launched its Rs 500 crore initial public offering (IPO) at price band between Rs 983 - Rs 985 per piece. The issue received oversubcription of 4.44 times.
At upper price band, the issue was available at PE of 48x FY17 pre issue EPS and 50.8x post issue capital.
Geetanjali Kedia, analyst at Sptulsian Investment Adviser had 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."
Rahul Jain, Ankit Tikmany analysts at IIFL Wealth Management had said, "It may be noted that the nature of the Matrimony.com business is not comparable to that of Just Dial and Info Edge."
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