The ₹4.97 billion (US$76 million) IPO by Matrimony.com facilitated the complete exit of Bessemer and partial exit to Mayfield and CMDB funds as per Luthra & Luthra (L&L) partner Vishal Yaduvanshi.
L&L advised Matrimony in relation to its IPO of equity shares following which the company’s shares were listed on the Bombay Stock Exchange and National Stock Exchange of India. “Our role entailed conducting due diligence on the issuer, drafting the offer document, negotiating the transaction agreements on behalf of the issuer as well as advising on the matters relating to Indian laws in relation to the transaction,” Yaduvanshi told India Business Law Journal.
“The team from Luthra took lead on and played a proactive role in preparing the relevant disclosures in the offer documents as well as advising the client on compliance related activities,” said Yaduvanshi. “Matrimony is one of the first few Indian companies engaged in providing online matrimonial services to undertake an IPO, with significant operations overseas, and, accordingly, the applicable regulatory requirements and compliances needed to be examined thoroughly.”
[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”3″ ihc_mb_template=”2″ ]
Matrimony CEO Murugavel Janakiraman told the media that the company went ahead for an IPO as some of their investors sought to exit. Yaduvanshi explained that an IPO is the most preferred route for exit by investors in Indian companies due to the valuation and liquidity it provides.
Janakiraman also said the IPO was relatively small as the company did not need more money. Yaduvanshi said the legal compliance requirements, whether diligence or disclosure related, are generally neutral to the size of the offering. “The deal was marketed in reliance on the exception under Rule 144A and the offer document provided complete disclosures as per regulations. However, the smaller size of the offering shrunk the disclosures on ‘use of proceeds’ from the offer.”
The L&L team comprised partners Yaduvanshi and Manan Lahoty, managing associate Abhiroop Lahiri, and associate Mansi Jhaveri. Axis Capital and ICICI Securities were the book running lead managers to the IPO. S&R Associates acted as their legal counsel as to Indian laws, while Shearman & Sterling acted as their international legal counsel. Khaitan & Co acted as counsel to certain selling shareholders as to Indian laws.
Matrimony is a leading online matchmaking platform, providing matrimonial and related services through over 300 websites, mobile websites and apps.
[/ihc-hide-content]
