Naukri.com IPO to hit market on 30th October 2006, Mkt cap at 800 Cr

Naukri.com IPO is going to hit markets on 30th October. Infoedge (India) Ltd the promoter company of Naukri.com, Jeevansaathi.com, 99acres.com and executive search firm Quardangle is going to issues 5323851 equity shares at a price band of Rs 290 – 320 per share which is 29 – 32 times of the par value of the share.

Post issues Infoedge will have a total 27,295,256 equity shares outstanding which will give Infoedge a valuation of Rs. 800 Cr plus. For FY 2005- 2006, Infoedge reported net income of Rs 82.4 Cr and net profit of Rs 13.29 Cr. Hence post issue Company will be valued at 10x of revenue multiple and will have a P/E of 60 which is considerable high. However Naukri.com has grown 15 times in just 4 years as in 2002 it has revenue of just Rs 3 Cr and net loss of Rs 1.1 Cr.

Naukri.com which was launched in year 1997 has emerged as one of the largest dotcom in recruitment space. Its other competitors are Monster India and TimesJobs.com. Naukri.com IPO is going to create history as it is the first dotcom IPO in India, the only other listed dotcom in India is rediff.com which is listed on NASDAQ and not in India.

This issue is going to bring huge gain for ICICI Venture as it was the first investor in Naukri.com, where it invested Rs. 7.29 Cr in year 2000.