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Matrimony.com IPO Review / Analysis – Should you tie the knot or reject the proposal?

Issue Detail:

»» Issue Open: Sep 11, 2017 – Sep 13, 2017
»» Issue Type: Book Built Issue IPO
»» Bid/Offer Opens On: September 11, 2017
»» Bid/Offer Closes On: September 13, 2017
»» Face Value: Rs 5 Per Equity Share
»» Issue Price: Rs 983 – Rs 985 Per Equity Share
»» Finalisation of Basis of Allotment: On or about        September 19, 2017
»» Market Lot: 15 Shares
»» Minimum Order Quantity: 15 Shares
»» Initiation of refunds: On or about September 20,      2017
»» Credit of Equity Shares to demat accounts: On          or about September 20, 2017
»» Commencement of trading of the Equity Shares     on the Stock Exchanges: On or about September     21, 2017
»» Listing At: BSE, NSE

 

Matrimony.com, the online web based matchmaking supplier, has opened its Rs 500-crore first sale of stock for subscription on Monday, with a price band of Rs 983-985 per share.

The Initial Public Offer, which will close on September 13, contains fresh issue up to Rs 130 crore, and an offer available to be purchased of up to 37,67,254 value shares by promoter gathering (Murugavel Janakiraman and his mom Indrani Janakiraman) and financial investors – Bessemer India Capital Holdings II, Mayfield XII (Mauritius) and CMDB II.

It will be the one of the first organization from the internet matchmaking administrations space to be recorded. Henceforth, analysts expect appeal for the issue and furthermore expect huge amount of retail investors to come forward for this issue.

Majority of analysts recommended subscribing to the issue, referring to financial stability, leadership position in online matchmaking business, huge potential in matchmaking administrations space and one of a unique business model.

GEPL Capital allocated a subscribe rating to the IPO as it trusts Matrimony.com has an exceptional plan of action and solid development measurements which will make it lucrative. The organization stands to pick up from operating leverage, it feels.

Huge potential in the matchmaking administrations space, adaptability of marriage administrations section, estimating power because of solid brand picture and unique plan of action will be four key triggers for the organization proceeding, KR Choksey said while having a subscribe rating on the issue.

Matrimony.com currently operates its business in two segments – Online Matchmaking services and Online and Offline Marriage services and related sale of products. It offers matchmaking services through internet and mobile platforms in India and internationally. It is one of the first companies to provide online matchmaking services in India, having massive database comprising 3.08 million active profiles (being profiles that have been published or logged in at least once during the prior 180-day period).

Toward the finish of June 2017, Matrimony had 140 retail focuses crosswise over India. Its lead image, BharatMatrimony, has 15 dialect based spaces under its umbrella. It likewise has different entrances like EliteMatrimony, CommunityMatrimony, MatrimonyDirectory, MatrimonyPhotography, MatrimonyBazaar, MatrimonyDirectory and MatrimonyMandaps.

IIFL Private Wealth feels not at all like unlike developed countries, there’s a gigantic interest for matchmaking inside groups/positions in India. Embracing a miniaturized scale showcase system for tending to this need, the organization has worked more than 300 group entries.

At an upper value band Rs 985, the organization is exchanging at FY17 P/E various of 46.2x which is impressively high given practically identical companions, for example, Just Dial are exchanging at 30.2x FY17 multiples, KR Choksey said.

Matrimony.com has timed an income CAGR of 11.6 percent, EBITDA of 38 percent and benefit of 43 percent amongst FY13 and FY17. The organization acquires more than 95 percent of income from its matchmaking administrations.

Matrimony.com’s negative total assets of Rs 16.2 crore as of June 2017 is a tremendous change from the March figure of negative Rs 76.1 crore, generally the result of the post FY17 productivity, IIFL Private Wealth said.

As indicated by IIFL, IPO continues are required to be productively used prompting higher incomes from expanded brand awarness and lower rentals and intrigue costs.

Market Analysts discover a few dangers and worries that must be considered while subscribing for the issue.

One of the key dangers that BharatMatrimony faces is rivalry from dating sites/Apps and other wedding sites/Apps, they said.

Enhancement of business, other key activities might be unsuccessful. Tambulya.com and Matchify.com were thoughts which did not emerge as arranged.

According to them, the company may fail to convert free members to paid members or fail to retain existing base of paid members.

Reputation of the company could get hampered, if its service platforms are misused by any of its users, they feel.

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