So, the online match-making site Matrimony.com is well on its way to enter the Indian trading ring, with the market regulator Securities and Exchange Board of India (SEBI) issuing final 'observations' on the company draft red herring prospectus.
The company had planned to come out with its initial public offer a couple of years ago, but shelved the proposal due to unfavouable market conditions.
Matrimony.com, which runs its business under BharatMatrimony brand, looks to raise up to Rs 350 crore through the issue (Rs 130 crore through a fresh issue and the rest through an offer for sale of up to 3.767 million equity shares).
The online matchmaking company plans to utilise the proceeds of the issue for its advertising and other business promotion activities, besides spending on purchase of land for construction of office premises in Chennai. A part of the proceeds will be used to settle its debt and for general corporate purposes.
The company is planning to construct an office in Chennai and is looking to invest Rs 40 crore for purchasing land for that purpose. The company already has a few offices in Chennai, but they are rented. It is felt that a new structure will help improve coordination among the nearly 1500 associates working in the existing premises.
The price band for the issue of equity shares, each with a face value of Rs 5, will be decided by the company later.
The equity shares on offer for sale include 14.61 lakh shares of Bessemer India Capital Holdings, 1.56 lakh shares of Mayfield, and 16.83 lakh shares of CMDB II. Besides these, 3.84 lakh shares of Murugavel Janakiraman, and 0.83 lakh shares of Indrani Jankiraman, the promoters of the site, will also be on offer.
The promoter of the company Murugavel Janakiraman said the company recorded a profit of Rs 43 crore last year, despite one-time IPO expenses of approximately Rs 4 crore.
Given the fact that the indices are at historic highs, the match-making site's IPO is perhaps set to hit the stands at the right time.
