Matrimony.com Limited, which runs BharatMatrimony is preparing for its Initial Public Offering (IPO) of worth Rs 500 crore which is slated to be issued on September 11, reports Economic Times. The IPO will comprise of both fresh issue of shares, and existing share sale via Offer For Sale (OFS) method. Some existing shareholders, including promoters and investors of BharatMatrimony, will use the FOS route to sell their shares, allowing some of them to partially exit, the report added.
The online matchmaker is looking to raise Rs 130 crore via fresh issue of shares at a face value of Rs 5 per share. While 3.76 million OFS shares will be made available at a price of Rs 983-985 per share.
The equity shares on OFS 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. With this IPO Bessemer will be exiting the company completely by selling its entire 6.87% stake in the company. More details, here.
Matrimony.com’s largest competition is Info Edge’s Jeevansathi.com, which reported revenue growth of 35% for the quarter ended March 2017 (Q1 FY18). Note that Jeevansathi made a small profit at EBITDA level after many years in October last year.
Matrimony.com’s IPO troubles
This is Matrimony’s second IPO attempt. The matchmaking portal received the final observation letter in July, from the Securities and Exchange Board of India (SEBI) for the IPO. The company had previously postponed the December last year citing that the weak market conditions as a reason.
However, the IPO was seemed to be delayed due to Matrimony.com’s legal fight with its investors. In its first IPO paper in August 2015, Matrimony.com had revealed that it was fighting a lawsuit which alleged that the Matrimony is orchestrating an IPO for the purpose of diluting or extinguishing the US plaintiffs’ equity interest in Bharatmatrimony. The lawsuit was filed on May 13, 2011, by Rajan Desai and Real Soft Inc (plaintiffs in the US) against Infonauts, a wholly owned corporation of Matrimony’s Janakiraman, Bharatmatrimony.com, the board of directors of Bharatmatrimony.com in the Superior Court of New Jersey, Mercer County. More here.
Update: In Matrimony’s latest DRHP filing in May 2017, the company mentioned that it has settled the case with Rajan Desai and Real Soft for $8 million and will pay out the amounts in 22 installments.