Matrimony.com Buyback 2022

(i) Matrimony.com is one of the oldest and leading matrimony portals of India. The Chennai-based company operates in three segments – matchmaking services, marriage services and related sale of products and other services.

(ii) As of March 31, 2015, Matrimony.com had a large database of profiles comprising 2.65 million active profiles (being profiles that have been published or logged in at least once during the prior 180-day period), which creates a network effect that attracts more users to register or subscribe and also results in higher customer engagement. According to the Key Business Metrics Report, in fiscal 2013, fiscal 2014 and fiscal 2015, Matrimony.com had 568,000, 571,000 and 647,000 paid subscriptions, respectively.

(iii) The company differentiates itself from other players in India by following a micro-market strategy whereby it offers a range of targeted and customized products and services that are tailored to meet the requirements of customers based on their linguistic, religious, caste and community preferences as well as personalized matchmaking services such as AssistedMatrimony and EliteMatrimony.

(iv) Matrimony.com has also launched marriage services such as MatrimonyDirectory.com for listing of matrimony-related directory services and MatrimonyPhotography.com to provide wedding photography and videography services. The company has also introduced Tambulya.com, an online marketplace operated by its subsidiary, Tambulya Online Marketplace Private Limited, for gifts for weddings and other occasions on a bulk order basis.

(v) In FY2015, its network of websites, mobile sites and mobile apps had 647,000 paid subscriptions and 2.57 million free profiles.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jul 04 2022
Buyback Opening Date: Jul 26 2022
Buyback Closing Date: Aug 08 2022
Buyback Offer Amount: ₹ 75 Cr
Date of Board Meeting approving the proposal: May 12 2022
Date of Public Announcement: May 12 2022
Buyback Offer Size: 24.5%
Buyback Number of Shares: 6,52, 173
Price Type: Tender Offer
FV: 5
Buyback Price: ₹ 1150 Per Equity Share

Details of Buyback:

The Board approved the proposal of buy back of fully paid-up equity shares of face value Rs5 (Rupees Five only) each of the Company ("Equity Shares") for an amount not exceeding Rs 75 Crores. Maximum Buy Back Size is being 24.24% and 24.36 % of the aggregate of the total paid-up Equity Share capital and free reserves of the Company based on the latest standalone and consolidated audited financial statements of the Company respectively as on March 31, 2022, at a buy back price not exceeding Rs 1150/-  per Equity Share through the "tender offer" route, on a proportionate basis as prescribed under the Securities and Exchange Board of India.

Salient financial parameters:

 
Particulars (Cr) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Sales 101 146 189 205 241 255 293 335 348 430 439
Expenses 100 149 173 193 225 248 234 258 274 376 372
Operating Profit 1 -2 15 12 17 7 59 78 74 54 67
OPM % 1% -2% 8% 6% 7% 3% 20% 23% 21% 13% 15%
Other Income 0 0 3 -15 -10 -69 0 19 16 18 17
Interest 1 -2 1 1 2 3 6 2 5 5 5
Depreciation 2 4 6 6 8 10 10 10 27 28 26
Profit before tax -2 -4 10 -9 -3 -75 43 86 58 39 54
Tax % -1% 0% 0% 0% 0% 0% 0% 14% 27% 24% 24%
Net Profit -2 -4 10 -9 -3 -75 43 74 42 30 41
EPS in Rs -38.84 -2.81 7.73 -6.8 -1.19 -50.8 20.22 32.52 18.68 12.97 17.83

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Matrimomy.com Buyback Offer 2022 in demat or physical form as on record date [ 04.07.2022 ]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [ 26.07.2022] by selling your shares through your broker on NSE or BSE. 3. Then on [22.08.2022], 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 173 Shares at CMP of Rs.772[2,00,000/1150=173)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 133556 133556 133556 133556
No. of Shares buyback 57 86 129 173
BuyBack Profit 21546 32508 48762 65394
Profit 16.13% 24.34% 36.51% 48.96%

Recommendation:

Review and Recommendation of Matrimony Buyback 2022 from our IZ team is: 5/10 1-5: Fair 5-7: Good 7-10: Excellent. [Current Retail Entitlement is 9%]

45 Comments

        On seeing the bidding particulars, I understand that the AR in respect of both the Retail Category and General Category will be almost the same.

        Just for info
        Bidding status
        Individual shows 7,30,000 shares.
        But
        Retails holding shares on record date is around 7,00,000.
        And also there are 56000 share holders on record date holding 7 lakh shares.
        Now total bidding no of orders received 38,400.
        Means 18000-19000 holders not Tendered their shares.

    Matrimony Buyback: ER 32/236. BUYBACK Begins on 26/7 and ends on 08/8. Settlement by 22/8

    Matrimony has fixed 4th July 2022 as Record date for Buyback

    @admin
    In recommendation column, wrongly mentioned “Gail” in place of “Matrimony”.
    Please correct.

    Dear SRK ji
    Filatex 1212 / 1500 (80%) shares accepted. Great underdog!!

      Very good AR. Congratulations. Thank you n all the best.

    Zydus life sciences tender offer buyback- Rs 650/- current price- Rs 356
    Total 1.13% equity. ER – 2.7 – 5%

    For Matrimony:
    Increase from 650 to 750 is frightening for me. The gap is too high..
    It may be overall loss .. I would avoid till it reaches 700 or lower..

    Experts,
    Whether 1 Qty 100% AR strategy will work in Motilal Oswal and Matrimony ?

      @admin
      In recommendation column, wrongly mentioned “Gail” in place of “Matrimony”.
      Please correct.

    Motilal Oswal Financial Services Buyback Particulars:

    Buyback size: upto 14,54,545 shares
    Buyback price : Rs. 1100/-
    Buyback amount: Rs.160 Crores
    Mode : Through Tender Offer
    Record date : Yet to be announced
    CMP: Around Rs. 851/-
    Happy investing to all of you. Thank you.

      Thanks SRK, Motilal and matrimony not excited me.. Current market condition is bad…
      Also acceptance ratio would be low also last results were really bad..
      Looking at Ambuja and ACC instead for open offer… There is also no 15% funda and AR is normally very high..
      What is your suggestion..

        Sumit ji,
        Extremely sorry for the delay in responding. As I am not interested in the open offers, I have not studied both the Ambuja and ACC. I have purchased 148 shares of Motilal and only 42 shares of Matrimony with optimism. Of course, I honour your views. Thank you n all the best.

        AR is around 31.5% in respect of Motilal Oswal buyback. Not a bad one. Thank you.

      Filatex BB 565 ACCEPTED OUT OF 700 TODAY TRANSACTION REFLECTING IN D MAT

    Purchased 30 shares @ Rs. 765.05. Planning to purchase 20 more shares @ Rs. 750.05, if available. Thank you.

      Are you considering that 35% of small investors will apply for buyback ( for determining AR )?

    Entitlement may be around 5.7% considering the 10.07% of Retail Shareholding patterns at present.

      10% is non institutional holding. Retail holding (under 3 Lak) is around 5-6%

    Good news is that promoters are not participating. And, they hold 50% stakes in the company.

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