India’s Matrimony.com Private Ltd, the company behind matrimony portals BharatMatrimony.com, EliteMatrimony.com, CommunityMatrimony.com etc has filed its draft red herring prospectus (DRHP) with capital market regulator SEBI to launch its initial public offering (IPO). In its draft prospectus, the Chennai-based internet company said it plans to raise INR350 crore through fresh shares while existing investors plan to sell 16.6 lakh shares through an offer for sale (OFS). Matrimony.com did not disclose more details related to share pricing and total number of shares to be offered in IPO. Kotak Mahindra Capital Company, Citigroup Global Markets and Deutsche Equities India have been appointed underwriters to the IPO. The company competes with other consumer internet properties Shaadi.com, Jeevansathi and SimplyMarry.
Among existing shareholders, the largest chunk of 14.61 lakh shares will be sold by US venture capital firm Bessemer India Capital Holdings. Smaller quantities will be offloaded by Draper Investment Company LLC, Hartenbaum Revocable Trust and Indrani Janakiraman. Shares worth INR25 lakh in the IPO will be reserved for eligible employees.
Matrimony.com plans to use INR150 crore from issue proceeds towards advertising and business promotion activities. Smaller allocations will be made for purchase of an office premises in Chennai and repayment of overdraft facilities.
According to the draft prospectus, promoter and promoter group owns nearly 80.19% equity stake in the company while the rest is with venture capital firms and directors. Biggest among venture capital firms is Bessemer India Capital Holdings which plans to sell its entire 9.89% stake in the IPO. Mayfield and CMDB, which own 5.19% and 2.92% shares respectively, do not intend to participate in the IPO.
In a sign of a great revival in India’s IPO market, Matrimony.com has become the second company from the consumer internet space to file draft papers for maiden public offer this year in India. E-commerce firm Infibeam.com, which filed for IPO prospectus last month, is awaiting SEBI’s approval.