Matrimony.com Limited, which runs BharatMatrimony, has received the final observation letter from the Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO). Murugavel Janakiraman, founder and CEO of Matrimony.com confirmed this to MediaNama. This was first reported by VCCircle.
After postponing its previous IPO plans in December last year, the company refiled its draft red herring prospectus (DHRP) for an IPO with SEBI in May this year. In June, SEBI had sought certain clarifications from the company, and on July 13 issued the final observations.
As per the new DHRP, Matrimony.com is looking to raise Rs 130 crore via fresh issue of shares at a face value of Rs 5 with up to 37,67,254 equity shares up for sale. The size of the IPO is expected to be about Rs 500 crore. The equity shares on offer for sale include 14,61,006 lakh shares of Bessemer India Capital Holdings, 1,55,760 lakh shares of Mayfield, and 16,83,207 lakh shares of CMDB II, plus 3,84,447 lakh shares of Murugavel Janakiraman, and 82,834 shares of Indrani Jankiraman, who is a member of the promoter group.
The equity shares Bessemer has offered for sale as part of the IPO, represents its entire 6.87% stake in the company. Bessemer was in any case looking to exit even during the previous IPO plans in 2016. The equity shares CMDB II has offered for sale represents a little over one-third of its 23.75% stake in the company, while the shares Mayfiled has offered for sale account for 6% of its 11.92% stake in the company. Janakiraman currently holds a majority 55.57% stake in the company, of which he has put up for sale shares worth 3.25% of his total stake. Indrani Janakiraman has also put up her entire 0.39% stake for sale.
Matrimony.com had filed its previous DRHP in August 2015 and was looking to raise Rs 550 crore, and its SEBI approval for the IPO was set to expire on 18 December. At the time, Janakiraman had told MediaNama that of the Rs 550 crore, Rs 350 crore will be going in to Matrimony as primary offering and the rest will provide an exit for venture capital firm Bessermer Venture Partners, which was looking to offload around 1.66 million shares.