Indiamart Approves Share Buyback of Rs 500 Cr At 37% Premium

On Thursday, IndiaMART InterMESH Ltd, a mid-cap consumer discretionary firm, announced a share buyback of Rs 500 Cr in addition to announcing its Q1 results. According to a filing with the stock exchange, the company's board of directors has authorised the proposal for the buyback of 12,50,000 equity shares with a face value of Rs. 10 each at a price of Rs. 4000 each for a total amount of Rs. 500 crores.

"The Equity Shares proposed to be bought back at the Buyback Offer Price are 12,50,000 Equity Shares, 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. The Buyback Offer Size represents 24.12% and 24.33% of the aggregate of the Company's fully paid-up equity capital and free reserves based on last Audited condensed interim Standalone and Consolidated Financial Statements of the Company for the period ended June 30, 2023," said IndiaMART in a stock exchange filing.

The Noida-based company recorded a consolidated net profit of Rs 83 Cr in Q1FY24 up by 78% from Rs 47 Cr in Q1FY23. The company's net income saw a 50% YoY growth in Q1FY24 at Rs 339 Cr compared to Rs 226 Cr in the year-ago quarter while its revenue from operations reached Rs 282 Cr in the quarter under review up by 26% YoY from Rs 225 Cr reported in the corresponding quarter of FY22. Its consolidated EBITDA stood at Rs 77 Cr in Q1FY24 up by 20% YoY from Rs 64 Cr in Q1FY23 and EBITDA margin came at 27%. For the quarter, the total cash flow from operations was Rs. 91 Crore. As of June 30, 2023, the cash and investment balance was Rs 2,394 crore.

In the first quarter of FY24, IndiaMART recorded 254 million traffic and 22 million unique business enquiries. 7.6 million supplier storefronts were added, a 6% YoY increase and 207,683 paying subscription providers were added, a net addition of 4,993 subscribers for the quarter.

"We are pleased with the healthy growth in revenue, deferred revenue, cash flows along with steady operating margins as we start the new fiscal. We are confident about the continued growth and will continue to invest in technology and people to strengthen our value proposition further to accelerate digital adoption amongst businesses. Our sustainable cashflow helps us in making these investments towards building a strong foundation to leverage emerging growth opportunities," said Dinesh Agarwal, Chief Executive Officer.

On Thursday, the shares of Indiamart Intermesh Ltd closed on the BSE at Rs 2899.30 apiece up by 0.90% from the previous close of Rs 2873.50. The offer is at a significant premium of 37.96% based on the current market price while taking into account the share buyback price of Rs. 4000. The stock made a 52-week-high of Rs 3,050.65 on (04/05/2023) and a 52-week-low of Rs 1,965.00 on (25/07/2022). During Q1FY24, the company recorded promoter shareholding of 49.22%, FIIs stake of 26.60%, DIIs stake of 5.73%, public stake of 18.34% and others' stake of 0.12%.