IndiaMART Intermesh Limited IPO Details, Analysis, Subscription & Discussion


IndiaMART Intermesh Limited IPO Issue Details:

IPO date:                  24 June – 26 June 2019
Issue Size:                475 Cr
Offer Price:              Rs 970 – Rs 973 Per Equity Share
Market Lot:              15 Shares & multiples
Exchange Listing:   BSE, NSE

IPO Timelines (tentative dates):

Allotment & refund:    02 July
Credit to Demat:           03 July
Listing on Exchange:   04 July

Company Promoters: Mr. Dinesh Agarwal & Mr. Brijesh Agarwal

Objective of the Issue: Offer For Sale (OFS) issue for exiting some stake of existing shareholders.

IPO Registrar: Link Intime India Private Limited

Company Overview:

  • Incorporated in 1996, IndiaMart Intermesh Limited ( is India’s largest & World’s 2nd largest (after Alibaba) online B2B (Business to Business) classified marketplace connecting global buyers with suppliers through business directories, online product catalogs, buy-sell offers, industry specific marketplaces, printed media and trade shows participation.
  • is a platform where suppliers, mostly SMEs, register themselves and do business transactions over the business leads generated by
  • IndiaMART is the India’s largest online B2B marketplace for business products and services with approximately 60% market share of the online B2B classifieds space in India
  • In June 2014, the firm launched a subsidiary “Tolexo” (, an e-commerce platform for SMEs. It features industrial goods, safety equipment and various tools.

Business Operation:


  • IndiaMART provides a robust two-way discovery marketplace connecting buyers and suppliers for business products and services with approximately 60% market share of the online B2B classifieds space in India.
  • Buyers locate suppliers on IndiaMART marketplace, including both Indian small and medium enterprises, or “SMEs”, and large corporates, by viewing a webpage containing the supplier’s product and service listings, or a “supplier storefront”, or by posting requests for quotes called “RFQs” or “BuyLeads”.
  • Client Base: Bulk Buyers, Bulk Suppliers, Manufacturers, Exporters, Service Providers, SMEs, MSMEs.
  • Business model:The revenue from operations was earned through
    1. sale of subscription packages
    2. Pay per lead
    3. Advertising
    4. passing requests for quotes (RFQs) to sellers

IndiaMART Intermesh Ltd IPO Analysis:

Financial Performance:


Valuations as on 31st Mar 2018:
1. Earning per share (EPS): 20.22
2. Price to Earning ratio (P/E): 973/20.22 = 48

Valuations as on 31st Mar 2019:
1. Earning per share (EPS): 7.61
2. Price to Earning ratio (P/E): 973/7.61 = 127

Company category:  fast-grower

Company Strength:

  • IndiaMART’s strong network effects and brand recognition drives leadership (monopoly with 60% market share) in the B2B marketplace in India with a large number of buyers on IndiaMART online marketplace results in more inquiries for suppliers, which in turn attracts more suppliers to register, create supplier storefronts and list products and services, consequently attracting more buyers.
  • Diverse industry, product and service categories. Thus strong repetitive customer base.
  • Efficient and effective marketing platform for suppliers which in turn attract larger suppliers and leading brands while growing core SME segment supplier base
  • Aggressive growth phase with Subscription packages and subscription-free services for suppliers
  • Continuous Innovation with various initiatives such as automated algo based match making, personalized recommended search service.
  • E-commerce firm IndiaMart expects to maintain a compounded annual growth rate (CAGR) of 29% for the next two years as like previous 3 years, mainly on account of big brands joining the platform
  • India’s GDP growth, Govt. policies like Make in India, Digital India, GST, Easy & speedy loans to SMEs are making difference in MSME sector growth. This would boost the B2B business.
  • Deepening internet penetration fueling E-commerce growth in India

Company Risks:

  • Competition from new and existing companies may reduce demand.
  • World’s Biggest player Alibaba if enters to Indian market then that  may threaten the business.
  • Exposed to risks associated with online security and fraud and thus the brand reputation
  • If overall performance of the Indian economy goes down, then that will surely impact the business like Demonetization
  • Any infringing, illegal and counterfeit products harm the reputation of brand.
  • Any strict future Govt. restrictions/policies on Online B2B business may be concern.

Field Analysis:

  • As per various interviews of Management and related articles, Alibaba had tried to enter India 2-3 times but couldn’t successful because of IndiaMART and other govt. restrictions.
  • IndiaMART is currently 10 times bigger than its 2nd competitor of Indian market i.e. tradeindia, sulekha, infibeam etc
  • Company is virtually debt free and growing steadily.
  • As per company internals, The company is employee friendly and having efficient management to grow the organization much bigger.

Peer Comparison:

  • Though the company has said there is no direct competitor listed but we can compare the company with Infibeam Avenues (B2B) and JustDial. The offer price valuation of IndiaMART is much higher than both of above competitors but one thing to be noted that Infibeam and JustDial IPOs had opened with premium.

Analysis Conclusion:

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  • Monopoly in Indian B2B business with strong network effect and brand reputation, Aggresive growth with improving financials, Continuous innovation in business match-making are the plus.
  • Due to adjustments, financials seems decreased in 2019 compared to 2018 so comparing with 2018 financials, company’s offering price valuation is relatively higher to the market.
  • But, positive GMP (Grey Market Price), small size IPO, only 10% quota for retail, 1st IPO after post election & that after a long time with business monopoly and fast growing company are taken into consideration. So my view is POSITIVE for LISTING(1st day) gain. But due to higher pricing valuation I recommend you to check the QIB and NII Subscription figures for first 2 days of opening and then take the call for subscription.

IndiaMART Intermesh Ltd IPO subscription status:



EPS – Earning per share
B2B- Business to Business
SMEs – Small Medium Enterprises
OFS – Offer for Sale
RFQs – Request for Quotes
P/E – Price to Earning
RoE – Return on Equity
QIB – Qualified Institutional Buyer
NII – Non-Institutional Investors
RII – Retail Individual Investor
CAGR – Compounded Annual Growth Rate

Disclaimer & Conflict of Interest:

The above analysis is based on my understanding of the company and RHP of IndiaMART Intermesh Ltd. You should research more and consult your financial adviser before taking any decision.

Analysis by –  NISM Certified Research Analyst & Investment Advisor.


  1. Superb subscription response from all the categories on last day as expected.
    QIB- 30.83x
    NII- 62.13x
    RII- 14.07x
    Employee- 6.06x
    Total- 36.21x

    Lets hope to get allocation & listing gain 🙂


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