Noida-based India Exposition Mart Limited, one of the leading venue planners and providers in India and the fourth largest integrated exhibitions and conventions venue, has received capital market regulator Sebi's nod to raise funds through an initial public offering (IPO).
The initial share sale with a face value of Rs 5 per equity share comprises fresh issue of equity shares aggregating up to Rs 450 crore and an offer-for-sale (OFS) of up to 11,210,659 equity shares by existing shareholders. The Offer is being made through the Book Building Process, wherein note less than 75% of the Offer shall be available for allocation to Qualified Institutional Buyers, not more than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders.
The offer of sale comprises up to 8,417,529 equity shares by Vectra Investments Private Limited, up to 600,000 equity shares by Rakesh Sharma, up to 471,130 equity shares by Vivek Vikas jointly held by Asha Ahlawat, up to 370,000 equity shares by MIL Vehicles & Technologies Private Limited, up to 300,000 equity shares by Dinesh Kumar Aggarwal, up to 300,000 equity shares by Pankaj Garg, up to 300,000 equity shares by Overseas Carpets Limited, up to 200,000 equity shares by Navratan Samdaria, up to 100,000 equity shares by RS Computech Private Limited, up to 80,000 equity shares Lekhraj Maheshwari jointly held with Prakashi Devi Maheshwari and up to 72,000 equity shares by Babu Lal Dosi (The "Selling Shareholders").
The company may consider a private placement of equity shares aggregating up to Rs 75 crore. If such pre-IPO placement is undertaken, the fresh issue size will be reduced.
Of Rs 450 crore fresh issuance, the company is planning to use about Rs. 316.91 crores for funding capital expenditure requirements for expansion of our existing infrastructure facilities, Rs 17 crore for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and for general corporate purposes.
India Exposition Mart is one of India's major venue planners and providers, providing technology-driven, world-class facilities and safety standards for worldwide business-to-business exhibits, conferences, congresses, product launches, and promotional events, among other things.
Located in Greater Noida, India's most popular MICE destination, and its exhibition centres and mart are stretched across 58 acres of land, with a building complex of 2,34,453.29 square metres, offering a combination of trade mart, exhibition, and conference facilities, with a capability of hosting more than one event simultaneously, with a combination of technology merged with high-end facilities and safety standards, suitable for hosting international business-to-business exhibitions, conferences, congresses, product launches, promotional events and most predominantly act as a centralized contact point for overseas buyers and the cottage-based manufacturer exporters for conducting business.
The venue planner has approximately 15 years of experience managing and organising exhibitions and trade fairs, and has managed and organised a variety of exhibitions seminars, meetings, runway displays, and gala nights and conventions, including the Indian Handicrafts and Gifts Fair, Elecrama, Auto Expo - The Motor Show, CPHI&P-MEC, and Print Pack, which are among India's most well-known events, with an average of 170 events throughout the last five fiscal years, and from April 1, 2021 to December 31, 2021.
Various ministries of the Indian government, statutory corporations, companies, and renowned global agencies, including the Ministry of Finance, Ministry of Commerce & Industry, Ministry of Environment, Forest and Climate Change, Ministry of Health and Family Welfare, Export Promotion Council for Handicrafts, International Garment Fair Association, Trade Promotion Council of India, and Indian Printing Packaging & Allied Machinery Manufacture, have all used it as a venue.
As of December 31, 2021, India Exposition Mart had an order book aggregating to Rs 1,21.52 crore from various exhibitions, with its Expo Centre and Mart having a total display area of 73,308 square metres and 24 virtual events spread out over 113 days to ensure that its clients can maintain continuity in their outreach to their respective audiences. It houses over 800 permanent show rooms of Indian exporters, and has 14 multi-purpose halls, 29 meeting rooms, 4 open areas, 4 speciality restaurants and an ongoing guest house project (under-construction) with 128 rooms and amenities. In addition, it also has buyers' lounge, foreign exchange outlet, logistic support, extensive parking and modern security and safety features.
The company faces intense competition across its market segments ranging from large, diversified businesses to smaller companies specializing in niche products and services, which includes Hyderabad International Trade Expositions Limited, Bangalore International Exhibition Centre, Bombay Exhibition Centre, Hyderabad International Convention Centre, Pragati Maidan (ITPO), India International Convention and Expo Centre, Karnataka Trade Promotion Organisation, Codissia Intec Technology Centre.
India Exposition Mart had revenues of Rs 13.30 crore in FY21 and for six months ended September 30, 2021, stood at Rs 10.66 crore which primarily includes income from space rent for fair and exhibitions of Rs 4.78 crore and income from maintenance services of Rs 5.77 crore.
Emkay Global Financial Services Limited is the sole book running lead manager and Kfin Technologies Limited is the registrar to the offer.