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 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% |
31 Comments
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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.
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 💯
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
Not yet Ritam ji. But who knows! . All I mean is not worth buying before the outcome of the Board meeting is known.
Enough is enough.No more matrimony for me 🐒
why anything in wrong in this buyback ?
Haha🤣, but all has to go though this to learn.
Ofcourse 👌✅