IndiaMART InterMESH Limited Buyback 2023

IndiaMART  is India’s largest online B2B marketplace, connecting buyers with suppliers. With 60% market share of the online B2B Classified space in India, the channel focuses on providing a platform to Small & Medium Enterprises (SMEs), Large Enterprise as well as individuals. Founded in 1999, the company’s mission is ‘to make doing business easy’.

IndiaMART for Buyers

  1. The convenience of connecting with sellers anytime, anywhere
  2. Wider marketplace with a range of products and suppliers
  3. Payment Protection Program

IndiaMART for Suppliers

  1.  Enhanced business visibility
  2.  Increased credibility for your brand
  3. Lead Management System
  4.  Instant Payment Solution : Pay With IndiaMART

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Aug 25 2023
Buyback Opening Date: Aug 31 2023
Buyback Closing Date: Sep 06 2023
Buyback Offer Amount: ₹ 500 Cr
Date of Board Meeting approving the proposal: Jul 20 2023
Date of Public Announcement: Jul 20 2023
Buyback Offer Size: 2.04%
Buyback Number of Shares: 12,50,000
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 4000 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 12,50,000 ((Twelve Lakhs Fifty Thousand) equity shares of the Company (representing 2.04% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 4,000/- (Rupees Four Thousand Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 500,00,00,000 (Rupees Five Hundred Crore Only).

Salient financial parameters:

Particulars (In cr) Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales + 404 497 624 665 751
Expenses + 595 483 451 332 439
Operating Profit -191 14 173 333 312
OPM % -47% 3% 28% 50% 42%
Other Income + 7 36 62 85 108
Interest 0 0 3 7 5
Depreciation 3 4 21 16 12
Profit before tax -187 46 210 396 403
Tax % 61% 73% 30% 28% 23%
Net Profit + -72 13 146 287 310
EPS in Rs -36.22 2.2 25.3 47.23 50.71
Dividend Payout % 0% 0% 20% 16% 2%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of IndiaMART InterMESH Limited in Demat or physical form as on the record date [25.08.2023]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [31.08.2023 to 06.09.2023] by selling your shares through your broker on NSE or BSE. 3. Then on [14.09.2023], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 50 Shares at CPM of Rs. 3125 (2,00,000/4,000)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,56,250 1,56,250 1,56,250 1,56,250
No. of Shares Buyback 16 25 37 50
Buyback Profit 14,000 21,875 32,375 43,750
Profit% 8.96% 14.00% 20.70% 28.00%


    I haven’t purchased any shares of India Mart due to financial limitations for participating in the Buyback.

        Hi, I applied for Indiamart buyback, 1 share got accepted and debited from demat account.But money has not been credited.

          Money should have been credited by now if not then it means you have an issue with the bank details available in DP/DMAT. I suggest you check with your broker. When there is an issue with the client’s bank account money gets credited to the pool account maintained by the broker.

    8 submitted and 1 get accepted. Can calculate AR on this basis .but sure less than 20% AR .TILL evening we have to wait

    When is the extinguishment of shares and the payouts likely to happen? (Need the funds for Siyaram & Sinclairs!)

    Indiamart no of orders – 1,35,527

    Looks like single acceptance work here

    please help me Whenever I try to apply in indimart share buyback throught cdsl so i am found this problem txn not allowed early payin time limit exceeded

    Buyback Opening Date : Thursday, August 31, 2023

    Buyback Closing Date : Wednesday, September 6, 2023

          Help me understand this a little. My understanding is that 1 share strategy works if the AR is 50%? So the number of accepted shares gets rounded up? Or is it something else?

            Or is there something like if the number of applicants < number of shares, they accept 1 share from each applicant?

      Well, 100 percent for single share holders 😜 Some things may be there for others. Not good to predict. Never seen predictions coming true in this arena.

    Board of Directors of the Company, vide its resolution dated August 9, 2023, considered and fixed Friday, August 25, 2023, as the Record Date for the purpose of determining the entitlement and names of shareholders, who will be eligible to participate in the Buyback.

    Indiamart Buyback :there will not be much diff in ER nad AR due to one share game

      I do not think so as the buyback size is 5 times as of the last time (though the company has given bonus in the ratio of 1:1).

    Expected ER Retail.

    wrost case : 4%
    Good case : 6%
    Very good case 8-10%

    Buyback Size:- 1250000 Share
    Buyback Price:- 4000

    Record Date:- Yet to Dedcide
    Through tender Route

      Representing 2.04 % of the total number of Equity Shares in the total existing paid-up equity capital of the Company as on June 30, 2023.

        Pray for the Kind n early views of SUMIT JI regarding this buyback. Thank you very much in anticipation of your prompt response.

          I am also waiting for your kind response yet another time 😊

            Sumit ji,

            Thank you very much for your kind response n views.

            Will be buying again only if available below the price of ₹ 2900/ which is unlikely.

      Ankit ji,

      Thank you very much for your kind information.

    Rumours showing BB PRICE WILL BE 3500-3600 IN A ONLINE comunity.

      No official statement released yet. I suggest you do not enter in any trade on the basis of market rumors.

    Got stuck in this as my average is 2950. Reviewed chart later and have a large deal few days back with a very huge volume which signal weakness. Will place a stop loss somewhere near to 2850. Bought 84 shares at this rate.

      Fingers crossed so I can move out atleast on break even or a minimum loss.

        I think luck is on my side. Positive result and good buyback size and price. I think it is good to buy at Rs 3,000 for buyback purposes as the previous buyback size is 100 crore and ER for small shareholders is 1 out of 63 and AR is 9.55% last year so we can safely expect an AR of 35%-40%.

          Finally share in upper circuit. Still holiding for tendering in buyback. Any expert comments?

    I have burnt my hands in last buyback of Indiamart, where only 1 share was accepted from 17 or 18 and it has cost loss over all…

    Would not venture till all details are open…
    Market is already hot and there are various counters in mid cap, which can give much better profit in lesser time and lesser risk…

    So would wait for details for both Aarti and Indiamart

      Thank you Sumit ji and Rohit ji for your prompt update. I sold half of my holdings today. Rest will be disposed of tomorrow hopefully at a better margin

    I bought 40 India Mart today @ 1843.5 . May sell tomorrow if profitable and wait for the outcome of the Board meeting to consider buying further. It is a very well rated co. Aarti only after the Board meeting

    Gopi ji Sumit ji
    Your previews are waited for Arti drugs ltd and India mart

      Thank you dear Bishnoi ji for remembering. Views have been made clear. Good luck.

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