Matrimony.com IPO Review

By | September 11, 2017

Matrimony.com IPO Review – Online match making portal Matrimony.com’s IPO is now open for the subscription on the stock exchanges. Should you apply or not? This is the big question. Check the given page where you will find many answers about the Matrimony.com IPO. We are going to give you some details which can be beneficial to you. It will help you make your decision.

Some Facts

  • The IPO of Matrimony.com will be open between 13th September 2017 to 15th September 2017.
  • Price band is Rs 983 to Rs 985 per equity share.
  • Retail investors will get price discount of Rs. 98 that means the price band for the retail investors will be Rs. 885 to Rs. 887 per share.
  • Market lot is 15 shares, so for one lot retail investors will pay Rs. 13,305.
  • The company expects to raise Rs 500 crore via this IPO.
  • The IPO offers fresh issue of up to Rs 130 crore and an offer for sale (OFS) of up to 37,67,254 shares.
  • The stock of the company is available at available at 51 times FY17 P/E with a 10 per cent discount to retail investors at the upper price band of Rs. 887 per share.
  • The stock of the company is available at 46.2 times P/E on FY17 basis (post dilution) at the upper price band of Rs. 985 per share.
  • Company generates revenue from match making services and marriage services and related sale of products.
What Experts say about the Matrimony.com IPO
  • IIFL Wealth: Subscribe, listing gains possible
  • Centrum Broking: Avoid
  • KRChoksey: Subscribe
  • Angel Broking: Subscribe for mid to long term gains
  • Motilal Oswal Securities Ltd: Subscribe
  • Ventura Securities Limited: Subscribe for listing gains
Financials

Here are the details of the company financials, the company earns 95% of its revenue from the match making services.

Matrimony.com Financials

Matrimony.com Financials

The company has clocked a revenue CAGR of 11.6%, EBITDA of 38% and profit of 43% between FY13 and FY17.

Top 10 shareholders of the company

Matrimony.com top 10 shareholders

Matrimony.com top 10 shareholders

Above is the list of the Top 10 shareholders of the company.

  • Pre-issue Shareholding: Promoter shareholding 99.4%
  • Post issue Shareholding: Promoter shareholding 51% / Public Shareholding 41%
Objects of the Issue
  • Advertising and business promotion activities;
  • Purchase of land for construction of office premises in Chennai;
  • Repayment of our overdraft facilities;
  • General corporate purposes.
Pros
  • India is biggest market for the mobile websites and mobile apps, BharatMatrimony can make good money from its push to mobile websites and mobile apps.
  • Marriage services segment has huge potential to grow in India.
  • Company has strong brand image and no listed competitor.
  • Strong user data base, It has 3.1 million active profiles, the company claims that it owns 51% market share.
Cons
  • Competition from dating websites/App and other matrimonial websites/Apps.
  • Settlement payments for a case in USA. Company paid expenses of around Rs 57.36 crore between FY13 and FY16 towards legal or other fees.
  • The steep valuation gives limited margin of safety to investors.
  • Lack of diversification of business, Failed ventures like Tambulya.com and Matchify.com.

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