I wish NIIs and risk averse retail investors listen to the advice of "AVOID" and stay away, improving the chances of allotment for risk taking retail investors
Entire IPO money is being used for Promoters and other investors to sell off their Stake.
B2B Marketplace will be a fiercely competitive business in future and IndiaMART's 99% revenue depends upon subscription fees received from registered seller.
Company PE ratio is around 200 (Unconsolidated Results) and 125 (Consolidated Results) at Issue Price of 973. It is very high even if compared to Private Banks or FMCG businesses.
Company had negative EPS in 2 out of last 3 years (Unconsolidated Results) which means business model is not yet stable.
My Prediction - IPO will get through but listing gains could be around 5%-7%. Not worth the risk.
900+ issue price for company who was in loss for continuously 3 years in past. Also, profit for this year less than previous year. Just want to understand do we not consider these factor when we decide to apply for IPO?
1) Consecutively negative net worth of the company during 2016, 2017 & 2018 is working as a warning signs for the new investors.This negative net worth may make difficult & expensive for the company to raise finance in future to meet their liquidity needs.
2) Company is involved in many controversy so this are basic things which investors have to look.
3) Online B2B classifieds provide a cost effective and convenient channel for exchange of goods and services by connecting buyers and suppliers. They primarily operate on the following revenue streams: Subscription,Pay per lead,Advertising.
4) Competitor in India are IndiaMart, TradeIndia, Exporters India, Alibaba India and JD Business. Now valuation for this company and trading strategy are not at all good in India this are my basic sense.