Matrimony.com IPO subscribed 1.36 times on Day 2
MUMBAI: The initial public offering of Matrimony.com, which runs an online match-making business under the Bharat-Matrimony name, was subscribed 1.36 times on Tuesday, the second day of the IPO, data from stock exchanges shows.
As of 5 pm, the portions of shares reserved for institutional investors and retail investors were subscribed 0.83 time and 4.97 times, respectively. The portion of shares reserved for noninstitutional investors was subscribed only 2%.
The company has priced its shares in a range of ₹983-985 per share. The ₹500-crore IPO will close on September 13.
The IPO is a fresh issue of shares aggregating up to ₹130 crore and an offer for sale of up to 3.7 million shares. The offer for sale will see Matrimony’s investor Bessemer Venture Partners make a complete exit from the company, while Mayfield will sell part of its stake.
Matrimony.com will use proceeds from the share sale for advertising and business promotion activities, purchase of land for construction of an office in Chennai, and repayment of overdraft facilities.
On Friday, the company said it raised ₹225.8 crore by allotting shares to institutional investors as part of its anchor book allotment.
The anchor book is that portion of an IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day (working day) before the launch of an IPO and acts as an indicator of institutional investor interest.
A total of eight investors bought 2.29 million shares at the upper end of price band at ₹985 per share, according to the filing.
Till August this year, 17 companies have raised a total of ₹14,185.12 crore through IPOs, data from primary market tracker Prime Database shows.
Last week, two companies raised ₹600 each. They include Dixon Technologies (India) Ltd, a contract manufacturer of electronic products, which was subscribed 117.65 times on the final day and Bharat Road Network Ltd, a road and highways company, which was subscribed 1.8 times.
In 2016, the Indian primary market saw 26 companies raise ₹26,493.8 crore through the IPO route, data shows.