Matrimony.com Limited Buyback 2024
1. Company Background:
Matrimony.com Limited is a leading online matrimony service provider in India, founded in 1997 by Murugavel Janakiraman. The company operates one of the largest matchmaking and marriage-related services platforms in the country, catering to a diverse range of communities and religions.
2. Business Model:
Matrimony.com’s business model is primarily subscription-based. Users can create profiles on the platform for free but must subscribe to paid plans to access premium features such as contacting potential matches, personalized matchmaking services, and enhanced profile visibility. The company generates revenue from these subscriptions, as well as from advertisements and allied services.
3. Products and Services: The company offers a wide range of products and services across various categories:
a) Matchmaking Services: The flagship brand, Bharat Matrimony, is one of the most recognized names in the online matrimony market. Other niche matchmaking services include Tamil Matrimony, Telugu Matrimony, Kerala Matrimony, and many others, catering to specific linguistic and religious groups.
b) Marriage Services: Matrimony.com also provides marriage-related services such as Matrimony Photography, Matrimony Bazaar (a wedding marketplace), and Matrimony Mandaps (wedding venue booking), offering end-to-end solutions for weddings.
4. Subsidiaries and Brands: Matrimony.com has several subsidiaries and brands under its umbrella, including:
a) Elite Matrimony: A premium matchmaking service targeting high-net-worth individuals (HNIs).
b) Community Matrimony: A collection of over 300 community-specific matrimonial sites catering to various Indian communities.
c) Jeevansathi (in some regions): Another matrimonial brand that focuses on a different demographic within the matchmaking market.
5. Market Reach:
Matrimony.com has a strong presence across India and has expanded its services to cater to the Indian diaspora in countries like the USA, Canada, the UK, and the Middle East. The platform boasts millions of registered users, making it one of the most popular matrimony services globally.
6. Growth and Expansion:
Over the years, Matrimony.com has witnessed steady growth, driven by its innovative offerings, strong brand presence, and deep understanding of the Indian market. The company has continuously expanded its service portfolio and geographical reach, with ongoing efforts to diversify into new revenue streams and enhance user engagement through technology-driven solutions.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Oct 25 2024 |
| Buyback Offer Amount: | ₹ 72 Cr. |
| Date of Board Meeting approving the proposal: | Sep 05 2024 |
| Date of Public Announcement: | Sep 05 2024 |
| Buyback Offer Size: | 3.16% |
| Buyback Number of Shares: | 7,02,439 |
| FV: | 5 |
| Buyback Price: | ₹ 1025 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (In Cr) | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales + | 372 | 378 | 434 | 456 | 481 |
| Expenses + | 317 | 311 | 348 | 388 | 409 |
| Operating Profit | 54 | 67 | 86 | 67 | 72 |
| OPM % | 15% | 18% | 20% | 15% | 15% |
| Other Income + | 18 | 17 | 18 | 24 | 26 |
| Interest | 5 | 5 | 5 | 6 | 5 |
| Depreciation | 28 | 26 | 27 | 30 | 28 |
| Profit before tax | 39 | 54 | 72 | 56 | 65 |
| Tax % | 24% | 24% | 25% | 17% | 23% |
| Net Profit + | 30 | 41 | 54 | 47 | 50 |
| EPS in Rs | 12.97 | 17.83 | 23.4 | 20.97 | 22.26 |
| Dividend Payout % | 27% | 20% | 21% | 24% | 22% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 157950 | 157950 | 157950 | 157950 |
| No. of Shares Buyback | 64 | 98 | 146 | 195 |
| Buyback Profit | 13760 | 21070 | 31390 | 41925 |
| Profit% | 8.71% | 13.34% | 19.87% | 26.54% |
102 Comments
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10% tdx deducted or not 20,000 buyback price a
May I ask what you wanted to express 😀
May I ask what you wanted to express 😀
10% as Tax deducted from buyback value. Please guide , is there any provision to claim that amount, as my income is not taxable.
Sure, why doubt! Please file ITR2/ITR3 before due date which is 31st July in case of the first and you will get your TDS refund.
Thank you Gopi ji
30% AR was worse than the 40% I initially expected but not as bad as I feared after well over half the shareholders participated in the buyback.
I think will pay heavy taxes on big losses
Yeah, the company has already deducted 10% TDS on total consideration . Some brokers are still incorrectly showing the income as tax -exempt. If they don’t fix it , assesses will have to do the correct reporting on their own.
How it matters as in Income Tax return, we will get back 10 % TDS, so why to bother about TDS
Absolutely.
Well, those who are in a higher tax bracket will not be getting a refund but paying the balance tax unless they have paid advance tax already.
What is worse is the crash in the share price.
That is due to weak quarterly results compounded by market correction, especially in midcaps, but for some long-term investors, it has been quite fortuitous as the price has been high when they needed to sell and low when they needed to buy/reload. Of course, those doing a pure buyback play would have faced a loss.
13.6% AR in general category
Hi Amit,
hard luck. I too was anticipating higher AR in general category.
I think promoters also participated.
No, they can’t . ER of General category was based on promoters not participating. They can’t change their mind during the buyback process.
This BuyBack is a live example of fact that only 2% of people pay direct taxes. Low AR suggest that people can accept income as per slab rate and still make profit.
I think 30% Acceptance in retail category
Yes it is 30% AR
Sounds slightly high. Did you participate in General category yourself or is this from a secondary source ?
Sorry that was meant for the General category AR of 13.6% . What was the number of eligible, tendered and accepted shares in that case ?
116 Accepted of 850
Self plus family source
I think it should be more than 40%
On what basis do you think so ? I would be surprised if it exceeds 40%.
Suprisingly high participation by shareholders. Not sure if everyone fully understood tax implications, but AR might be less than 30%.
How do you know participation is high.
Does it get published anywhere.
BSE website has the data while buyback is live.
Okay thanks
It looks like the corporates,particularly the FIIs have Understood the tax implications wef 1/10/24 and the consequences are going to hurt💔 every one.
General category and small shareholder category quotas are separate. High participation by general category shareholders cannot reduce AR for small shareholders. The only hypothetical situation in which it will have an impact is if general category participation is so low that less than allocated shares are tendered and some are transferred to small shareholders category. In that case, AR for general category would be 100% and would be lower for small shareholders even though they benefit from excess shares being transferred to them.
Sounds logical
ER is 15/101 for small shareholders and 15/253 for General
ER 14%
Tender window 30 oct to 6 now
Any guesses of AR ??
This is the first one under the New tax provisions.Seeing the recent rise in price, I presume the participation to be quite high and hence, AR may be low. There is no other buyback as well. This will be especially attractive for people with nontaxable income from general sources and high short term capital gains from Equity.
Very difficult to estimate how many people will avoid this due to complications arising from the new tax regime. I would say at the low end it should be at least 25%. At the high end, if enough people stay away it could even be 100%. If I had to guess one number, I would say around 40%. Let us see how it turns out.
Thank you
Thank you
The Resolution is passed as Special Resolution with requisite majority – Buyback approved by Shareholders. We can expect record data announcement soon.
Thanks for the update.
26 Oct 2024 RD
It’s 25 Oct 2024
Thank you Girish ji.
When would be the expected record date ???
Till 11 Oct 24 postal voting is valid so it will be after 11 Oct only
Koi h kya ab bhi yanha
Given the non-participation of the promotor, is it likely that the acceptance of shares will be higher for the retail quota or the general quota?
Here’re the relevant points –
1. Retailer participation will be lower, due to the tax treatment.
2. DIIs may not have any tax implication?
3. What about tax implications of FII?
Voting on buyback from 12 sep to 11 oct
It mean it is final that this buyback will not happen before 30th September?
Yes obviously. Even the record date can’t be declared until the shareholders vote is done.
You are almost right bro but it’s not to be must that record date not announced before postal ballot ends. I am not much known about this but I sure that recently a company announced BUYBACK and go for postal ballot but company announced record date before voting ended. I participated in that BB
Which company was it ? What will happen if the company declares a record date and shareholders vote against the buyback ?
From 600/ on or around 12/8/24 this one reached 846/a few days back and now hovering around 800/ Really sorry for people who have been unlucky in buying recently.
Gopi sir should we participate in this buyback ?
I think this buyback will be completed after October and the new Income tax provisions will be applicable. Hence family members having no taxable income may be encouraged to participate. The current market price of ₹800/ looks on the higher side. Harsh ji,if you are having taxable income, better not to participate.I personally don’t consider this as a quality stock.
all my 6–7 accounts are under lower tax slabs ,
the price feels like on the higher side , will 750 be a good price to enter gopi sir?
Make sure you understand the tax implications fully. The full buyback proceeds will be treated as dividend income. If you don’t have enough capital gains to offset the capital loss you will be allowed on the purchase, even accounts in low tax brackets can have huge tax burden compared to profit in many cases.
I will hesitate to buy even if it is available at around 700/ Harsh sir.For my non taxable income friends and family members, may be a little more than that.
Times have changed and Indices are going higher and higher.I have raised my buy target to 760/ plus.I hope and wish that the old buyback scenario will return with some kind of sensible changes .
Please read and understand the Tax implications explained by Trinity ji and be very certain that you will have no taxable income at the end of the year even after the entire buyback proceeds are treated as dividend income .
i read it. Now it doesnt make sense now to participate in the buyback as the amount we will receive from the company will be considered as dividend and taxed accordingly
I wish to be away from this Buyback as my risk tolerance is very low.
It is a positive signal that promoters don’t want to sell their shares at a price of 1025, but as far as the tax implications are concerned, it seems likely that this will get the new regime tax treatment.
Promoters of successful corporates generally had their shares ever since the birth of the company or may have been inherited. The buy value may be next to a rupee. The new tax provision is meant to make them pay. Knowing this, some of them have started another game which is there for all to see….I will be happy so long as buyback goes on.😜
Promoters of successful corporates generally had their shares ever since the birth of the company or may have been inherited. The buy value may be next to a rupee. The new tax provision is meant to make them pay. Knowing this, some of them have started another game which is there for all to see….I will be happy so long as buyback goes on.😜
Matrimony promoters had not participated in the 2022 buy back either. I don’t see the game which everyone else seems to be seeing. I just see them being bullish on the company and using the buyback to increase their shareholding in the company. Since they are not participating, they would be indifferent as to who benefits from the buyback. Most promoters who use buyback as a way to earn tax free income will stop tender offer buybacks completely.
I think there is a strong likelihood that minority shareholders with significant shareholding would vote against the buyback, but the promoters hold a majority stake and it should go through.
I appreciate it, Guru ji. It is seen that you have participated last time when the size was 24.something and the AR was less than that in the end.The buyback price was a good 1150/ then compared to 1025 now. And what our all time great Sumit ji had then commented is also available in the zone for all to see. The problem is matrimony is arranged in the Campuses begining with Schools these days and arranged marriages are really rare and may be in the endangered category . Sorry for people who don’t even know how to fall in love 💓 in their teens and book their partners.
Buyback size was 6.52 lakh shares last time. This time it is 7.02 lakh shares . And the shares outstanding are lower now . So, as a percentage , the buyback is bigger this time. The 24% last time would be of the percentage of capital + reserves, not of the total number of shares . It is impossible for AR to be below the % buyback size.
Anyway, there are very few promoters who buy shares in the open market and pass up a chance to make a tax free profit at a premium. For me, that is meaningful information but everyone is entitled to their opinion .
By the way, matchmaking is not just for arranged marriages, but also love marriage, dating, one night stands, lgtbq relationships etc. Much like everything else, there is a trend from offline to online . Infoedge and matrimony.com are the only ways to get that exposure until shaadi.com lists and infoedge is not a pure play .
Excellent input 👍 Keep it up dear 💯
Good to know that one night participation is also available. I am interested 🙂 Being loner, day is also okay
Don’t see how they can get shareholder approval and get the buyback completed before Oct 1. So, this might be the very first buyback under the new tax regime .
i think i have seen the scenario where shareholder approval sought in 10 days.
Which one was it ? All the ones I remember seeing are either for 3 days ( only for AGMs just before the meeting ) or for four weeks.
You are right .it doesn’t seems get completed before 1st Oct.
As promoter not participating
Expected ER – 6 51%
As per share holding they provided.
The proposed Buy Back is subject to the approval of shareholders by way of a special resolution through a postal ballot (including Remote E-voting) pursuant to Sections 108 and 110 of the Companies Act, 2013 read with Rules framed thereunder and all other applicable statutory approvals. The process, timelines and other requisite details concerning the postal ballot will be communicated in due course.
So 1 month voting period.
Thn record date announce
The Board has noted the intention of the Promoters and members of the Promoter Group of
the Company not to participate in the proposed Buy Back
No Record Date announced yet, as far as I can see. Will they be able to complete the buyback before Oct 1?
They can complete it before Oct 1, but its going to be very tight deadling for them. Lets see. Good Buyback price and promotor not participating – good sign for retail investors.
Last time they had a shareholder vote, I think. If that is the case this time, I don’t see how they will be able to complete it before Oct 1.
Also, promoters not participating will mostly help the General category, not Retail.
Matrimony promoters be like :
Tax tum pay karo. Hum participate hi nai karenge.
🙂 if so, then acceptance ration will be high.
Buyback price – ₹1,025 . Good one after long time. 🙂
Their is no big BUBACK
Why how much price expected buyback price
Price buy back and total amount of buy back please reply any one
Not yet Ritam ji. But who knows! . All I mean is not worth buying before the outcome of the Board meeting is known.
I think insiders have prior information in all buyback offers. In almost every offer, prices zoomed few days before public announcement. This one went from 600 to 800 in less than two weeks, that too after dividend.
Enough is enough.No more matrimony for me 🐒
😀
Why 🙄🙄🙄
why anything in wrong in this buyback ?
Haha🤣, but all has to go though this to learn.
But why ?
Ofcourse 👌✅
How much price expect buyback price?
30% AR was worse than the 40% I initially expected but not as bad as I feared after well over half the shareholders participated in the buyback.