Indiamart makes strong public market debut, shares up over 35%

IndiaMart, the parent company that runs popular B2B ecommerce platform Indiamart.com, has had a resounding public market debut. The company saw its shares trading at over 35% above its issue price, at the time of writing. IndiaMart’s shares were subscribed 36.16 times, making it one of the strongest new-age IPOs to come out of India.

The stock opened at ₹1,180 a share, up 21.3 from its issue price of ₹973. At 10.31 am, it was trading at ₹1,321.00 on NSE, up 36% from its issue price. In intraday trade. IndiaMart advanced as much as 33.08% to ₹1294.90 a share. The company has raised ₹475 crores in this IPO.

As a part of the public market debut, some of company’s earlier private equity investor shave taken partial exit from the company. Among those who have taken some exit, include Intel Capital, Amadeus Capital Partners and Quona Capital, according to the draft red herring prospectus (DRHP) filed by the company. Indiamart’s IPO thus signals that PE/VC firms investing in India’s new-age tech startups, are finally seeing some signs of maturity.

ICICI Securities, Edelweiss Financial Services and Jefferies managed the IndiaMart initial share sale.

Indiamart operates Indiamart.com, an online marketplace which helps businesses and upcoming entrepreneurs, find the right suppliers for their business. 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 red herring prospectus.

In terms of financials, Indiamart had reported strong numbers during its IPO filing. The company reported a consolidated adjusted net profit of ₹85.30 crore in fiscal year 2019, down 52% from a year ago. While net profit went down significantly, there was strong increase in the company’s total income, which stood at ₹507.40 crore, up 23.6% from ₹410.50 crore a year ago. EBITDA stood at ₹82.30 crore, up 76.61% from last year. The company has a zero debt and ₹77 crore cash on its account as of fiscal year 2019.