With India Exposition Mart Limited filing for the preliminary prospectus, we should soon be seeing another initial public offering of 2022. India Exposition Mart is a key venue provider and planner in India offering high-class amenities, tech-focus facilities, and safe infrastructure to host events.
As per the draft prospectus submitted by the company with the Securities and Exchange Board of India (SEBI), the size of the issue is set to be around Rs. 600 crores. This capital raise will include both, fresh sale of shares as well as the sale of existing shares under offer for sale. Fresh sale is likely to range somewhere around Rs. 450 crores whereas the rest are expected to be raised from the sale of 11,210,659 existing shares.
Let us know about the company.
About the India Exposition Mart Ltd.
India Exposition Mart Ltd. was incorporated as a company in April 2001 as a public unlisted company. It is a non-government organization providing facilities for organizing events like business exhibitions, product launches, promotional events, conferences, etc. They have been in the business for the past 21 years and own one of India’s top 4 exhibition venues in Noida.
As of December 31, 2022, the company owns a 73,308 sqm area that offers exhibition and convention facilities in India. The popular events that the company has helped their clients host include Indian Handicrafts and Gift Fair, The Motor Show Auto Expo, Print Pack, and CPHI&P to name a few.
The Extracts of DRHP
As per the draft prospectus, it can be learned that India Exposition Mart is looking forward to raising Rs. 600 crores from this initial public offering which will be launched sometime in 2022. This IPO includes OFS of 1.12 crore shares which will be sold by investors RS Computech, Vectra Investments, Overseas Carpets, MIL vehicles, Navratan Samaria, Pankaj Garg, and Dinesh K Aggarwal.
India Exposition Mart might be considering private placements of shares worth Rs. 75 cr. If this pre-public offer step of the private issue is successfully conducted, then the original fresh issue of shares worth Rs. 450 crores could be reduced.
Utilization of IPO Funds
The company has planned how the funds raised from the IPO shall be utilized. Since the amount raised from the fresh issue will go in the hands of the company, out of Rs. 450 crores, the sum of Rs. 317 crores shall be utilized towards meeting capital expenditure such as the expansion of the facilities. A fixed sum of Rs. 17 crores will go towards clearing off debt and towards meeting general purposes.
India Exposition Mart is headquartered in Noida and has been in the business for over two decades. Talking about the finances, the company had earned a revenue of Rs. 13.30 crores in the financial year 2020-21. Its revenues for the first half of 2021-22, which ended on 30th September 2021, were reported to be at Rs. 10.67 crores. The revenue earned by this event venue company comprises rental income as well as the income from providing maintenance services.
Noida-based India Exposition Mart is a comprehensive service provider when it comes to event and convention facilities. They offer a one-stop solution to any event-related requirements and seem to have good prospects for the future. However, as of now, we have to further wait and watch until additional details like issue price and date of launch are declared.
Who is selling the existing shares of India Exposition Mart under Offer For Sale?
The existing shares will be off-loaded by investors such as MIL vehicles, Vectra Investments, RS Computech, Overseas Carpets, and the individuals like Navratan Samdaria, Pankaj Garg, and Dinesh Kumar Aggarwal.
Who is the lead manager and registrar for India Exposition Mart IPO?
Emkay Global Financial Services will be the lead manager for India Exposition Mart Ltd. public offer. On the other hand, KFintech is going to be the registrar for its IPO.
What are the services provided by India Exposition Mart Limited?
The list of services provided by India Exposition Mart Ltd., not only includes offering convention center but also includes the supply of food and beverage at the event, supply of electricity and security, medical facilities, and also banking and foreign exchanges services. The company also provides services of a helipad for VIP visitors. In case of stay is required, India Exposition Mart also provides housekeeping services.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.