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You are here : IndiaNotes >> Research & Analysis >> IPOs >> Matrimony.com IPO

Matrimony.com IPO: The Pros and Cons

SMC | 12 Sep, 2017  | Follow Author | Add to my Favourites 
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Industry                        : Online Matchmaking

Total Issue (Shares)       : Offer for sale 3,767,254

Total Issue (Shares)       : Fresh Issue 1,319,797

Net Offer to the Public    : 5,087,051

Issue Size (Rs. Cr.)        : 500-501

Price Band (Rs.)            : 983-985

Retail & Employee Discount : Rs.98/- per share

Offer Date                     : 11-Sep-16

Close Date                   : 13-Sep-16

Face Value                   : 5

Lot Size                       : 15 Per Equity Share


Valuation


Considering the P/E valuation on the upper end of the price band of Rs.985, the stock is priced at pre issue P/E of 47.83x on its FY17 EPS of Rs. 20.59. Post issue, the stock is priced at a P/E of 50.80 x on its EPS of Rs. 19.39. Looking at the P/B ratio at Rs. 985 the stock having negative book value on pre issue basis and on the post issue book value of Rs. 50.41 the P/B comes out to 19.54x. On the lower end of the price band of Rs.983 the stock is priced at pre issue P/E of 47.73x on its FY17 EPS of Rs. 20.59.Post issue, the stock is priced at a P/E of 50.70x on its EPS of Rs. 19.39. Looking at the P/B ratio at Rs. 983, the stock having negative book value on the pre issue basis and on the post issue book value of Rs. 50.41 , the P/B comes out to 19.50x.


Outlook:


Matrimony is the leading provider of online matchmaking services in India in terms of the average number of website pages viewed by unique visitors in June 2017 (Matrimony.com data does not include data from all sites under Matrimony.com). However, the company has incured losses for 3 out of 5 financial years.



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About SMC
SMC Research, founded in 1990, is India’s leading share and stock broker, provides a wide range of financial services and investment solutions. A blend of extensive experience, diverse talent and client focus has made us the 4th largest broking house in India(Source: Dun and Bradstreet, 2008). Over the years, SMC has expanded its operations domestically as well as internationally. Existing network includes regional offices at Mumbai, Kolkata, Chennai, Cochin, Ahmedabad, Jaipur, Hyderabad, Bangalore plus a growing network of 2100+ offices spread across 425 cities/towns in India.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.



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