Intel Capital-backed online greeting cards firm Intrasoft Technologies, which operates under the brand 123greetings.com, is looking to raise Rs 50-54 crore through a public issue. The IPO, which would dilute its equity base by 25.12%, would translate into a valuation of around Rs 202-212 crore (~$ 45 million) for the company.
Intel Capital holds around 16.3% currently which would get reduced to 12.2% post IPO. It had invested a sum of Rs 20 crore in the company through convertible preference shares in 2007. Its cost of purchase is estimated at Rs 111 (after accounting for bonus issue) against the price band of Rs 137-145.
At the lower end of the price band, Intel Capital will be sitting on unrealised gains of over 23% on its three-year-old investment.
Kolkata-based Intrasoft is promoted by Arvind and Sharad Kajaria. For the year ended March’09, the company posted an income of Rs 23 crore with a net profit of around Rs 5.3 crore. On a diluted equity base at Rs 100 per share, the issue will value the company at price earnings multiple of around 38 on FY09 numbers.
Its closest competitor in the offline space is Archies (which incidentally is backed by BCCL). Archies has a market cap of Rs 62 crore despite it being over five times the top line and profits that were the same as Intrasoft for the quarter ended June’09. However, Archies reported a loss in FY09 as compared to profits for Intrasoft.