While other e-commerce biggies like Flipkart, Snapdeal etc are struggling to make their business model profitable, Infibeam Inc. Ltd will launch its initial public offer (IPO) on 21 March with target to raise Rs.450 crore, making it the first e-commerce firm to be publicly traded on Indian stock exchanges.
Infibeam filed its DRHP (Draft Red Herring Prospectus) with the SEBI (Securities and Exchange Board of India) on 30 June 2015 which was approved in October’15. The company has fixed the price band at Rs 360-432 per equity share for the IPO which will conclude on March 23.
According to the Draft Red Herring Prospectus, Infibeam is planning to utilize the funds generated via IPO to set up a cloud data center, shift its registered and corporate office, set up 75 logistics centers, buy software and for general corporate purposes. Infibeam Inc. portfolio includes e-commerce marketplace Infibeam, Buildabazaar, an e-commerce enabling services provider, and a domains business .ooo.
Sanjay Mehta, CIO, Indian Angel Network, said, “Infibeam’s IPO is mostly about getting an exit for its current investors and not really about raising money. There will be a few players who will take this route to raise funds but I don’t see that happening immediately. The bigger players are still to show some profitability.”
According to Sales Share documentation, the company revenue was 171.3 crore with net profit of 6.6 crore for the six month ended Sep’15.
Besides Infibeam, Bharat Matrimony may also launch their IPO very soon. SEBI had cleared their application in December last year.