Info Edge India plans IPO; to raise Rs 154-174cr

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Info Edge (India), a provider of online recruitment, matrimonial classifieds and related services in India (through its Web sites naukri.com, jeevansathi.com, etc.), proposes to enter the capital market with a initial public offering, IPO of 53.24 lakh equity shares of Rs 10 each through a 100% book building process, reports The Hindu Business Line.

It will be the first time an Internet company will offer an IPO in India.

The company plans to raise Rs 154.4 - 174 crore based on a price band of Rs 290-320 per share. The offer constitutes 19.5% of the fully diluted post issue paid-up equity capital of the company. The issue opens on October 30 and closes on November 2.

The company will use issue proceeds to purchase or lease real estate for their offices, to acquire companies and use alternative delivery models such as messages through mobiles, etc.

Of the total issue, 5.32 lakh equity shares will be reserved for the employees putting the net issue to the public at 47.91 lakh equity shares.

At least 60% of the issue will be given to qualified institutional buyers, QIBs of which, 5% will be allocated to mutual funds only; up to 10% will be given to non institutional bidders and remaining 30% to retail individual bidders on a proportionate basis.

Company performance

The company recorded total income of Rs 84.06 crore for fiscal year 2006 (Rs 45.12 crore). Net profit stood at Rs 13.29 crore (Rs 0.31 crore).

The business of the company comes through its four sites naukri.com for recruitment, jeevansathi.com, the online matrimonial division, 99acres.com, the online real estate classified division and Quadrangle, an offline executive search division.

The company plans to diversify into other segments of online classifieds market like automobile, educational and industrial products and also expand in the Middle East and South Asia.

ICICI Securities and Citigroup Global Markets India are the book running lead managers to the issue.