Milltec, Indiamart file for India IPOs

Both offerings will consist entirely of shares from existing investors: Multiples will sell 2.25 million shares in Milltec out of its 4.2 million total, while Intel Capital, Amadeus and Accion will sell 2.1 million, 171,000 and 475,000 shares in Indiamart respectively. The sale will leave Intel Capital with 101 shares, Amadeus with 427,000 and Accion with 476,000.

Pricing for the offerings has not been announced. Both companies gave the primary purpose of the offerings as boosting their visibility, stability, and brand image in India, and providing liquidity for shareholders.

Multiples invested INR1.77 billion in Milltec in 2013, taking a 15% stake. The company was founded in 2015 and operates four factories in India that make equipment for processing grains, primarily rice but also including wheat, maize, and pulses. It also offers management of rice processing operations on a turnkey basis.

In addition, Milltec holds an interest in online energy trading platform India Energy Exchange (IEX) through its energy-focused subsidiary Agri Power and Engineering Solutions. Milltec acquired a 5.5% stake in the platform in 2015 for an undisclosed amount.

Last year Milltec sold equipment to 1,556 customers, split about evenly between new and repeat buyers. It sells both domestically and overseas, with business in Africa, Southeast Asia and Europe. For the year ended March 2018, the company reported revenue of INR2.7 billion ($39 million), up from INR2.2 billion the year before. Over the same period, net profit grew from INR185 million to INR291 million.

Indiamart operates a business-to-business (B2B) marketplace for business products and services, with about 60% market share in the online B2B classifieds space in 2017. The platform targets Indian small and medium-sized enterprises (SMEs) that need a cost-effective and convenient channel for purchasing goods and services. Its major competitors in India include TradeIndia, Exporters India, Alibaba India, and JD Business.

As of March 2018, Indiamart had 59.8 million registered buyers and 4.7 million supplier storefronts, with over 50 million products and services listed for sale. Revenue for the year ended March 2018 came to INR4.1 billion, up from 3.2 billion the year before, while the net loss grew from INR131 million to INR724 million.

Amadeus, Accion and Intel Capital invested in Indiamart in 2016, joing Westbridge Capital to commit INR1.3 billion. The following year Amadeus, Accion and Westbridge invested another INR113 million.

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• Topics
• South Asia
• IPO
• Industrials
• Technology
• Support services
• India
• Multiples Alternative Asset Management
• Intel Capital
• WestBridge Capital Partners
• TMT
• manufacturing
• Exit