Matrimony.com stock closes over 8 percent lower post flat debut on BSE, NSE

Matrimony.com, the operator of online match making business under the BharatMatrimony brand, made a flat debut on bourses today.

Matrimony.com stock closed 8.51 percent or 83.80 points lower at 901.20 level.

Matrimony.com's stock listed on the BSE and the NSE at Rs 985, a zero percent premium, compared with an issue price of Rs 985, the upper end of the price band.

The stock of the Chennai-based firm later fell 8.62 per cent to Rs 900 on the BSE.

The Rs 500-crore IPO of the company was subscribed 4.44 times during September 11-13 share sale. The qualified institutional buyers (QIBs) portion was subscribed (1.88 times), non-institutional investors (41 per cent) and retail investors (18.16 times). The price band was fixed at Rs 983-985 per share for the IPO.

The firm is engaged in providing online matchmaking and marriage services. It offers services through Internet and mobile platforms in India and internationally. Murugavel Janakiraman is the CEO and founder of Matrimony.com.

The issue comprised fresh issue of up to Rs 130 crore and an offer for sale (OFS) of up to 37,67,254 shares. The face value of the shares is Rs 5 each. The OFS consists of up to 14,61,006 shares by Bessemer India Capital Holdings II Ltd, 1,55,760 by Mayfield XII, Mauritius, 16,83,207 by CMDB II, 3,84,447 by Murugavel Janakiraman and 82,834 by Indrani Janakiraman.

Net proceeds from the issue will be utilised towards advertising and business promotion activities, purchase of land for construction of office premises in Chennai, repayment of overdraft facilities and general corporate purposes.

Axis Capital and ICICI Securities were the book running lead managers to the offer. The registrar to the offer was Karvy Computershare Private Ltd.

Matrimony.com's online competitors are Shaadi.com and Jeevansathi.com, and key offline competitors include traditional brick and mortar companies offering marriage bureau and matchmaking services as well as community associations.

The firm had negative net worth of Rs 3113.2 crore as of March 31, 2017. The firm also restated losses in three of the past five fiscal years. For example, it sustained restated consolidated losses of  Rs 915.9 crore, Rs 292.9 crore and Rs 7506.9 crore in fiscal 2014, fiscal 2015 and fiscal 2016, respectively.

As of April 15, 2017, BharatMatrimony mobile app and apps for regional and community sites have achieved 5.8 million estimated installs according to www.androidrank.org. A significant number of its members currently utilise mobile sites and mobile apps to access online matchmaking services.