Shares of Indiamart Intermesh surged nearly 40% on their first day of trade on Thursday, underscoring investor confidence in the e-commerce firm following its Rs 476 crore initial public offering (IPO).
The operator of Indiamart.com, which according to KPMG, is the nation’s largest wholesale online marketplace with about 60% market, saw its stock rise to Rs 1,338, compared to its issue price of Rs 973.
The IPO, which saw investors such as Intel Capital, Amadeus and Accion Frontier Inclusion to sell their stake through an offer for sale, was subscribed over 36 times last week. Indiamart is also the first company to launch its IPO in the new term of Narendra Modi‘s government.
India MART was founded by Dinesh Agarwal and Brijesh Agrawal as a directory of the websites that his company IndiaMART InterMESH (which was started in 1996) was developing for customers in the Delhi-NCR region.In 1998, its second office, was set up in Mumbai. By 1999, the directory had more than 1000 listings.
Source: The Economic Times