March 9, 2022 03:28 PM
India Exposition Mart Ltd, a leading integrated exhibitions and conventions venue, has filed a preliminary prospectus with markets regulator SEBI to raise Rs 600 crore through an initial public offering.
The initial share sale comprises a fresh issue of Rs 450 crore and an offer-for-sale of 1.12 crore equity shares by selling shareholders.
The company does not have any promoter as all shareholders are under the ‘public category’.
Selling shareholders include Vectra Investments, Rakesh Sharma, Vivek Vikas, MIL Vehicles & Technologies, Dinesh Kumar Aggarwal, Pankaj Garg, Overseas Carpets, Navratan Samdaria, RS Computech, Lekhraj Maheshwari, and Babu Lal Dosi.
The company may consider raising Rs 75 crore before the filing of prospectus with the Registrar of Companies. If the said pre-IPO placement is undertaken, then accordingly, the fresh issue size will be reduced to the extent of the pre-IPO placement.
India Exposition Mart is likely to raise around Rs 600 crore, according to market sources.
Out of the fresh issuance, the Noida-based company will utilise Rs 316.9 crore for expansion of existing infrastructure facilities by setting up of an additional guest house, multi-level car parking (MLCP) and high halls; Rs 17 crore for repaying of debts, and the rest for general corporate purposes.
India Exposition Mart, a major venue planner and provider, has an order book of Rs 121.52 crore from different exhibitions as of December 2021.
Located in Greater Noida, a prominent MICE destination in India, its exhibition centers and mart are spread across 58 acres of land, offering a combination of trade mart with exhibition and convention facilities.
The venue planner and provider has approximately 15 years of experience in the management and organisation of exhibitions and trade fairs.
India Exposition Mart had recorded a loss of Rs 16.45 crore in FY21 impacted by COVID-led crisis, against a profit of Rs 44.89 crore in previous year. Revenue during the same period fell significantly to Rs 13.3 crore from Rs 154.4 crore.
It recorded loss of Rs 5.33 crore on a revenue of Rs 10.66 crore for the six months period ended September 2021. Revenue primarily included income from space rent for fair and exhibitions of Rs 4.78 crore and income from maintenance services of Rs 5.77 crore.
India Exposition Mart had revenues of Rs 13.30 crore in FY21 and for six months ended September 30, 2021, it had posted revenues of Rs 10.66 crore which primarily includes income from space rent for fair and exhibitions and income from maintenance services.
Emkay Global Financial Services is the sole book running lead manager and Kfin Technologies is the registrar to the offer.