Shares of this small-cap company engaged in offering online matchmaking services, jumped nearly 5 percent on Monday after announcing plans to buyback 7,02,439 shares of the company which represents about 24.85 percent of its total equity capital.
Price Movement
During Monday’s trading session, Matrimony.com Ltd‘s share price increased by 5 percent, reaching an intra-day high of Rs.684.00 per share, up from the previous close of Rs.654.65 apiece. The shares have retreated since then and are currently trading at Rs.655.00 per share.
What Happened
Matrimony.com Ltd plans to repurchase up to 7 lakh equity shares, representing 24.85% of its total equity capital based on the latest audited financials as of March 31, 2024. The shares will be bought back at Rs.1,025 each, reflecting a 26.5 percent premium over the last traded price of Rs.810 per share.
This buyback will be executed through the “tender offer” route, in accordance with SEBI (Buyback of Securities) Regulations, 2018. The company will announce the record date for the buyback at a later time. In compliance with regulatory guidelines, 15 percent of the shares designated for repurchase will be set aside for small shareholders.
This buyback approval comes after a previous repurchase program announced in June 2022, where Matrimony.com Ltd. had proposed a buyback price of Rs.1,150 per share, with a total offer size of Rs.75 crore.
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Financial Performance
In its latest financial update, the company reported net sales of Rs.116 crore for Q2 FY25, down 5 percent from Rs.122 crore in Q2 FY24. However, profit after tax remained stable at Rs.13 crore, compared to the previous year.
In terms of return ratios, the Return on Capital Employed (ROCE) and Return on Equity (ROE) stand at 20.8 percent and 18.2 percent, respectively. The company maintains a good current ratio of 2.14 and a low debt-to-equity ratio of 0.19.
About the Company
Matrimony.com Limited is a prominent Indian online matchmaking platform, primarily recognized for its flagship brand, BharatMatrimony, which is available in 15 regional languages. With a workforce of over 4,000 employees and more than 20 offices across India, the company also operates in the US, Dubai, and Bangladesh.
It offers a wide range of services, such as Assisted Matrimony and Elite Matrimony, to meet the varied needs of different demographics in the matrimonial sector.
Written by – Siddesh S Raskar
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