Matrimony.com Files for IPO

Matrimony.com, which runs online match making business under 'BharatMatrimony' brand, on Wednesday filed draft papers with markets regulator Sebi to raise an estimated Rs. 600-700 crores through an initial public offer (IPO).

The IPO comprises fresh issue of equity shares worth Rs. 350 crores and an offer for sale of up to 16.60 lakh scrips by existing shareholders.

The existing investors include Bessemer India Capital Holdings, Draper Investment Company LLC, Hartenbaum Revocable Trust and Indrani Janakiraman.

According to sources, the company is expected to garner Rs. 600-700 crores through the public offer. This would be the second major IPO by an Internet company after Justdial. The local search engine firm had raked in Rs. 950 crore through its public offer in 2013.

The funds would be used for business promotion, purchase and development of office premises in Chennai, repayment of overdraft facilities and procurement of hardware and software requirements for a centrally controlled contact centre and general corporate purposes.

Kotak Mahindra Capital Company, Citigroup Global Markets India and Deutsche Equities India are the book running lead managers to the issue.

Matrimony competes with portals like Shaadi.com, Times Group's SimplyMarry.com and Info Edge-owned Jeevansaathi.com. At the end of financial year 2014-15, the company had generated consolidated revenue of Rs. 242.84 crores and an operating profit of Rs. 17.80 crores.

In addition, the company had a database of profiles comprising 2.65 million active profiles. After a quiet year, IPO market is buzzing again as 25 companies have approached Sebi to float the IPOs since the beginning of 2015 and many others are in the process to file their initial papers.