The first Dot Com IPO in India is open for subscription. Info Edge India Limited promoters of leading job portal Naukri.Com is the first Internet company to go for an IPO in India.
Info Edge basically derives upto 90% of their income from Naukri and other job classifieds. Unfortunately, they don’t hold a single patent and it appears to be pure first in the market opportunity it is banking on. I don’t see any exponential organic growth due to pathetic internet penetration in India and BusinessWorld survey estimates mere 35% YoY growth for online job classifieds market. Internet businesses are very dynamic. The rise in social network can kill traditional companies like Naukri.com as someone might develop a clone of adSense, which will push targetted jobs on different social networks depending on their content and job seekers need not go to Naukri.Com at all ?
Investors with high-risk appetite have been told to subscribe to the issue. Also it appears to be issued at very high price-earnings ratio compared to it’s listed peers in midcap software.
Tags:Internet India , Web India