In­vest, but Cau­tiously

Many of the re­cent ini­tial pub­lic of­fer­ings were aimed at pro­vid­ing ear­lier in­vestors an exit route rather than cap­i­tal for­ma­tion.

Business Today - - CONTENTS - By MA­HESH NAYAK

Many IPOs were aimed at pro­vid­ing ear­lier in­vestors an exit route rather than cap­i­tal for­ma­tion

If it was not for some of our in­vestors look­ing for an exit, we might have not listed our com­pany,” says Mu­ru­gavel Janaki­ra­man, CEO, Mat­ri­mony.com. The com­pany, whose ini­tial pub­lic of­fer­ing, or IPO, in Septem­ber mopped up nearly `500 crore at `985 per share, got only `130 crore, as the rest went to ex­it­ing in­vestors. The stock was sub­scribed 4.5 times but, since its list­ing, has had a tepid run, end­ing the first list­ing day at `901.20. As of Septem­ber 26, it was down to `801.90, 18.5 per cent be­low its is­sue price. But Janaki­ra­man is not wor­ried. “The list­ing has given us liq­uid­ity and vis­i­bil­ity, apart from al­low­ing ear­lier in­vestors an exit,” he says. “We raised only `130 crore as we do not need more money.”

Mat­ri­mony.com is not a one-off case. The aim of many

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