IndiaMART Looking to Raise Rs 500 Crore From IPO; Files Draft Prospectus

IndiaMART InterMESH, which owns and operates what's believed to be the country'due south first e-commerce venture, IndiaMART, has filed a draft prospectus with market place regulator SEBI in the lead-up to a proposed IPO. The visitor is looking to raise effectually Rs. 500 crore, and is offering 4,288,801 disinterestedness shares of Rs ten each, with its promoters and primary investors selling some of their stakes in the issue.

According to an official statement from the company, Intel Capital will sell two.07 million shares, Amadeus Four DPF will sell 1,70,502, while Accion Borderland Inclusion Republic of mauritius volition sell 4,75,000 equity shares in the IPO. The company'southward promoters, Dinesh Chandra Agarwal and Brijesh Agarwal, will sell 8,52,453 and 5,77,656 shares, respectively.

IndiaMART is an online B2B (business organisation-to-business) market that connects suppliers with buyers, thereby taking various layers of middlemen out of the supply chain. It was founded dorsum in 1996 by former HCL engineer, Dinesh Agarwal, and is headquartered in Noida, Upwardly. The company is believed to utilise more than 2,000 employees around the country soon.

In an interview to Quartz, Dinesh Agarwal clarified that gain from the IPO volition not be pumped into the business, merely will be a way for current investors, including the promoters, to go some liquidity. He, however, did reveal that the company is looking to aggrandize its business to larger companies instead of but focusing on small and medium enterprises, which is what IndiaMART has mostly done until now.

According to the report, the company posted revenues of Rs. 410 crore during FY2018, earning a positive cash-flow of Rs. 182 crore. The report too states that the company has thus far raised almost Rs. 200 crore worth of capital from a number of venture capital investors, including Intel Majuscule, Amadeus Uppercase and Accion Frontier Inclusion Mauritius.