Matrimony.com - IPO Note - Arihant Capital Markets

Company & Business Profile

Incorporated in 2001, Matrimony.com is engaged in providing online matchmaking and marriage services. Company offers their services through Internet and mobile platforms in India and internationally.

They are one of the first companies to provide online matchmaking services in India, having database comprising 3.08 million active profiles (being profiles that have been published or logged in at least once during the prior 180 day period). They offer a range of targeted and customized products and services that are tailored to meet the specific requirements of customers based on their religious or caste preferences or other criteria such as marital status and age bracket.

As of June 30, 2017, they had 140 retail centres distributed across India where customers can walk in and register on their websites. Its flagship brand, BharatMatrimony, has 15 language based domains under its umbrella. They also have other portals like Elite Matrimony, Community Matrimony, Matrimony Directory, Matrimony Photography, Matrimony Bazaar, Matrimony Directory and Matrimony Mandaps.

Objects of the Fresh Issue

- Advertising and business promotion activities and will spend Rs 20 cr.
- Purchase of land for construction of office premises in Chennai and will invest Rs 43 cr.
- Repayment of overdraft facilities.
- General corporate purposes.

Outlook & View

- With IPO Proceeds Company are expected to increase its revenue from increased brand awareness and lower rental and interest expense.

- Focused expansion of its marriage service through cross selling and also help company to move up value chain.

- Leadership positioning in Online Matchmaking Services in India.

- Diversification from single product online matchmaking Company to marriage services provider.

- Following Micro-market Strategy and personalized services.

At upper price band, the issue is Available at PE of 48x FY17 pre issue EPS and 50.8x post issue capital.

Valuation

The issue has been offered in a price band of Rs 983-985 per equity share. At the upper price band of Rs 985 the stock is available at P/E of 48 (x) based on FY17 annualized EPS. We have "3 star" rating for the issue.

Source : Equity Bulls

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