Infra.Market, a prominent B2B e-commerce marketplace, is preparing for a significant initial public offering (IPO) potentially valued at up to $700 million. The company has partnered with eight major investment banks, including Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities, HSBC Securities, Motilal Oswal Financial Services, and Nuvama Wealth Management, to navigate its public listing.

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Infra.Market’s move towards a public listing comes amid a wave of new-age tech companies entering the stock market. This year alone, 10 Indian startups, including Unicommerce, Ola Electric, and FirstCry, have gone public. Notably, Infra.Market’s competitor, OfBusiness, is also in talks with investment bankers for an IPO expected by August next year.

IPO Plans and Market Expectations

Infra.Market's anticipated IPO is expected to raise between $500 million and $700 million, although the final size of the offering remains under discussion and will depend on market conditions. The IPO is likely to include both fresh issue shares and secondary share sales. The company intends to use the proceeds to repay debts accumulated through its aggressive organic and inorganic growth strategies. Recently, Infra.Market raised $20 million by divesting another minority stake in RDC Concrete, following a similar $20 million stake sale six months earlier to Ashish Kacholia’s group.

Company Background and Product Offerings

Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market has rapidly become a key player in the construction industry. The company offers a wide range of products, including ready-mix concrete (RMC), aggregates, construction chemicals, steel, AAC blocks, equipment solutions, pipes, fittings, MDF, plywood, and laminates. It also has private label categories for electrical products, tiles, sanitary ware, bath fittings, modular kitchens, wardrobes, and designer hardware.

Financial Performance

Infra.Market has experienced remarkable growth, with its gross scale soaring over ninefold from Rs 1,240 crore in FY21 to Rs 11,846 crore in FY23. Despite a 17% dip in profit, the company remained profitable, with revenue surging 90% in FY23 to Rs 11,846 crore, up from Rs 6,236 crore in FY22. The company's focus on growth and cost control allowed it to maintain a profit of Rs 155 crore in the last fiscal year, with a Return on Capital Employed (ROCE) of 15% and an EBITDA margin of 5.7%. On a unit level, Infra.Market spent Rs 0.98 to earn each rupee in FY23. Tiger Global is the largest external stakeholder, holding a 21.33% stake, followed by Accel with 16.87% and Nexus Ventures with 8.46%.

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Strategic Acquisitions and Future Plans

Infra.Market has strategically expanded its portfolio through key acquisitions. In September 2021, the company acquired RDC Concrete, India’s largest non-cement ready-mix concrete company, from private equity firm True North for Rs 730 crore. In 2023, RDC Concrete sold 10% of its stake, valued at around $20 million, to investors including Ashish Kacholia.

Looking forward, RDC Concrete is planning its own IPO in January 2025, with an expected valuation between Rs 3,500 crore and Rs 4,000 crore. Additionally, Infra.Market made a strategic investment in January 2022 by acquiring a 24% stake in Shalimar Paints for Rs 270 crore, further diversifying its offerings in the construction sector.

Conclusion

As Infra.Market gears up for its IPO, the company’s strategic growth initiatives and robust market presence position it well for future success. The public offering will not only strengthen its financial standing but also solidify its role as a leading player in the B2B e-commerce sector. With the potential listing of its subsidiary, RDC Concrete, on the horizon, Infra.Market continues to expand its influence in the construction industry, paving the way for continued growth and innovation. To know more about IPOs like this and pre-apply to these, open your DEMAT account now.

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