Matrimony.com freezes at 20% upper circuit for second straight day

Foreign portfolio investors (FPIs) increased stake in Matrimony.com to 14.74 per cent in the June quarter from 12.51 per cent in the previous quarter.

Shares of Matrimony.com were locked in the upper circuit limit of 20 per cent for the second straight day, at Rs 557 on the BSE on Tuesday. The stock of the country’s leading consumer Internet Company was trading higher for the fourth straight day and rallied 49 per cent during the period.

Till 12:35 pm, a combined 351,000 equity shares were changing hands on the counter and there were pending buy orders for 44,000 shares on the NSE and BSE. The stock was trading close to its 52-week high of Rs 639 touched on July 23, 2019.

Foreign portfolio investors (FPIs) have increased their stake in Matrimony.com by more than 200 basis points (bps) to 14.74 per cent in April-June 2020 quarter, according to shareholding pattern data disclosed by the company. FPIs were held 12.51 per cent stake in the company at the end of March 2020 quarter, data shows.

Matrimony.com being the leader in the matchmaking space believes the growth prospect is high as the India has a large unmarried population spread across the globe coupled with the increasing internet and mobile penetration in India, cultural receptivity to arranged marriages, and increased freedom of choice over life decisions.

The management said the internet base in India is expanding very rapidly and is expected to grow significantly in the coming years and this augurs well for the online matchmaking segment. To ride on the growth, the company will continue to focus on product and process improvements and invest in brand.

However, the marriage services business is expected to have a higher impact due to lower consumer demand and actual weddings that will take place in the future. Since the duration of the magnitude of Covid-19 is still uncertain, this will impact the company’s original growth plans for FY21, it said.