Popular matchmaking site BharatMatrimony.com parent company, Matrimony.com Ltd, plans to go public in the first half of September, said three people aware of the matter. The company operates several portals, such as BharatMatrimony.com, CommunityMatrimony.com, and EliteMatrimony.com.
The proposed Matrimony.com initial public offering (IPO) is expected to be worth around Rs500 crore, they told LiveMint.
The Matrimony business includes two segments – matchmaking services and marriage services.
The IPO of Matrimony will mark yet another technological or Internet IPO on the Indian market, which has seen only a handful of such companies.
Last year, the e-commerce company Infibeam Inc. Ltd became public in an Rs450 crore IPO, which was subscribed 1.1 times. Also last year, anti-virus software maker Quick Heal Technologies increased Rs451 crore through its IPO. Earlier this year, Internet and telecom infrastructure Original equipment maker Tejas Networks Ltd went public.
Earlier cases of technology companies that go public in India include the benefits of Just Dial Ltd and InfoEdge (India) Ltd, while companies like MakeMyTrip have decided to list in the US.
For Matrimony.com, this is the second attempt to go public lately. It had first submitted its draft of IPO Papers in August 2015, but did not go ahead with the stock sale then. The company has re-submitted its drafting papers in May this year, Post, which received it to obtain approvals in July to advance with its public offering.
“Matrimony.com has ended its investor roadshows, and they plan to start the public offer soon in the first half of September, most likely in the second week. There was a strong response to the company’s roadshows, so the demand for stock sales would not be a problem “said one of the three people quoted above and demanded anonymity as he is not entitled to speak with reporters.
Matrimony.com will be its Red Herring prospectus with the regulatory authorities next week, he said. “The profit margin is under final discussions between the Board of Management and the bankers and is due to be completed by the beginning of next year,” he added.
Matrimony.com declined to respond to questions about the IPO startup plans.
The company’s most recent attempt to go public is a new issue of stocks that aggregate up to Rs130 crore and an offer to sell up to 3.7 million shares. The offer for sale will see Matrimony’s investor Bessemer venture partners make a complete exit from the company while Mayfield will sell a portion of its stake.
Matrimony.com will use the sale of shares for promotional and business promotion activities, purchase of land for the construction of an office in Chennai, and the repayment of facilities.
According to the company’s sales document, as of March 31, it had a database with 3.03 million active profiles. In fiscal 2015, 2016 and 2017, the company had 647,000, 678,000 and 702,000 paid subscriptions.
Matrimony.com reported a consolidated turnover of Rs292.93 crore in 2016-17, of which Rs280.7 crore came out of its matchmaking service. It had a gain of Rs43.7 crore in 2016-17, against a loss of Rs75 crore a year earlier.
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