22nd June 2024- WestBridge Capital recently completed the sale of 14.6 lakh shares in IndiaMART InterMESH Ltd. through three bulk deals, fetching approximately INR 379.7 crore in total. The transactions were executed at INR 2,601 per share, marking a 1.8% discount to the stock’s previous closing price. Notably, SBI Mutual Fund acquired 10.8 lakh shares for INR 280.9 crore, while Morgan Stanley Asia (Singapore) PTE purchased 1.9 lakh shares amounting to nearly INR 50 crore, both at the same price per share.
This divestment coincided with IndiaMART’s announcement of shareholder approval for Dinesh Agarwal’s reappointment as Managing Director and CEO until January 2030. The company is currently undergoing leadership changes, with recent appointments including Jitin Diwan as CFO and Prateek Chandra transitioning to Chief Strategy Officer.
Founded in 1996, IndiaMART facilitates B2B transactions by connecting buyers with suppliers and earns revenue from leads and business services. In its recent financial results for Q4 FY23-24, the company reported a robust 78% year-on-year increase in net profit to INR 99.6 crore and a 17% growth in revenue from operations to INR 314.7 crore.
Despite its strong financial performance, Nuvama Institutional Equities has reduced its 12-month price target for IndiaMART to INR 2,650 due to subdued subscriber additions. Moreover, the company recently invested INR 89.7 crore in Baldor Technologies, acquiring a 10% stake to enhance its capabilities in fraud detection.
Conclusion
WestBridge Capital’s stake sale, alongside IndiaMART’s strategic investments and leadership changes, reflects ongoing developments in the company’s trajectory and market positioning.
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