Indiamart Intermesh hits new high on fundraising plan, zooms 54% in a month
Shares of Indiamart Intermesh hit a new high of Rs 8,239, up 3 per cent on the BSE on Tuesday after the company announced fund raising plans.
The board of directors of the Company is scheduled to meet on Monday, January 18, 2021, to consider raising of funds through issuance of equity shares through qualified institutional placements (QIPs) or through any other permissible mode, subject to applicable laws and necessary shareholder/ regulatory approvals, as applicable, Indiamart Intermesh said in exchange filing.
The company further said the board will also consider and approve the audited standalone and consolidated financial results of the company for the quarter ended December 31, 2020 (Q3FY21).
Indiamart is a dominant market leader in the online B2B Classifieds industry. The company banks on increased digital adoption among SMEs that constitute the majority of the sellers on the platform.
In the July-September quarter (Q2FY21), the company’s consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) more-than-doubled to Rs 82 crore as compared to Rs 36 crore in Q2FY20. Increase in EBITDA margin to 50 per cent in Q2FY21 from 23 per cent in Q2FY20 was primarily driven by sustained, as well as, temporary benefits arising from various cost optimization initiatives undertaken during the last six months.
With the pickup in business activity and increasing realization for online adoption by the small and medium businesses, the company’s revenue and customers have shown a positive recovery trend and helped it to maintain healthy margins as well as cash flows.
In the past one month, the share price of Indiamart Intermesh has zoomed 54 per cent, against 7 per cent gain in the benchmark S&P BSE Sensex. It was trading at its highest level since listing on July 4, 2019. The stock of the internet software & services company has zoomed nearly 750 per cent against its issue price of Rs 973 per share.