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Ahead of IPO, Matrimony.com raises Rs226 crore from anchor investors ahead

LiveMint logoLiveMint 08-09-2017 Swaraj Singh Dhanjal

Mumbai: Matrimony.com, which runs an online match-making business under the BharatMatrimony name, on Friday said it had raised Rs225.8 crore by allotting shares to institutional investors as part of its anchor book allotment, a day ahead of its initial public offering (IPO).

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 before the launch of an IPO and acts as an indicator of institutional investor interest.

The company will launch its Rs500 crore IPO on 11 September. It has set a price band of Rs983-985 for the share sale.

Apart from public markets investors such as Small Cap World Fund and HDFC Mutual Fund, the anchor book also saw the participation of private equity fund Baring Private Equity India AIF, according to a filing with the stock exchanges. Goldman Sachs Ltd too participated in the anchor allocation.

A total of eight investors bought 2.29 million shares at the upper end of price band at Rs985 per share, according to the filing.

The IPO closes on 13 September. The company is looking to raise Rs130 crore in primary capital through the IPO, while some existing shareholders are selling shares in a secondary offering.

Proceeds from the issue will be used for advertising and business promotion activities, purchase of land for construction of office premises in Chennai and repayment of overdraft facilities.

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