Synopsis
The confidential IPO route is facilitated under Regulation 59C of the Sebi (Issue of Capital and Disclosure Requirements) Regulations. Investment bankers on the IPO are Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities,
Infra.Market, an online marketplace for construction materials, has filed for an initial public offering (IPO) worth Rs 5,000 crore with the Securities and Exchange Board of India (Sebi), taking the confidential filing route
The public issue will be split between a fresh issue of shares and an offer for sale (OFS), in roughly equal proportion, according to a person aware of the development.
The confidential IPO route is facilitated under Regulation 59C of the Sebi (Issue of Capital and Disclosure Requirements) Regulations.
Investment bankers on the IPO are Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities, HSBC Securities, Motilal Oswal Financial Services, and Nuvama Wealth Management.
ET has reached out to Infra.Market for comments.
The move comes two weeks after the Mumbai-based company raised about Rs 732 crore from promoters and existing shareholders, valuing the business at around $2.8 billion. Founders Aaditya Sharda and Souvik Sengupta invested Rs 250 crore in that round through their promoter entity Silverline Homes Pvt Ltd, increasing their stake to about 30%.
Zerodha cofounder Nikhil Kamath’s NK Squared invested around Rs 200 crore in the funding round, according to filings with the Ministry of Corporate Affairs. Other investors who participated in the round include Tiger Global, Accel India, Evolvence India Fund and Nexus Ventures.
Founded in 2016 by Sengupta and Sharda, Infra.Market supplies a wide range of building materials, including concrete, steel, pipes and fittings, plywood, fans, lights, kitchen and electrical appliances, to real estate developers, contractors and architects.
The company closed FY25 with revenue of around Rs 18,000 crore and profit after tax of approximately Rs 300 crore, according to people aware of the matter. In FY24, it reported revenue of Rs 14,743.5 crore and a net profit of Rs 378 crore, as per Tracxn.
In June, the company raised $50 million in debt from Mars Growth Capital, a joint venture between MUFG Bank and private credit firm Liquidity Group, to support expansion and strengthen its product portfolio. In total, Infra.Market has borrowed $150 million from Mars Growth Capital.
The confidential IPO filing route, introduced by Sebi in November 2022, allows companies to submit draft prospectuses without making them immediately public. This mechanism, widely used by new-age firms, helps prevent competitors from accessing sensitive business information.
Other startups that have opted for the confidential route include PhonePe, Groww, Shiprocket, Boat, PhysicsWallah and Swiggy.
Earlier this year, India Ratings downgraded the company’s rating from ‘A-‘ to ‘BBB+’ with a ‘Negative’ outlook, citing concerns around debt refinancing and liquidity pressure.
Source: www.economictimes.indiatimes.com