NEW DELHI: The bidding process for the initial public offering ( IPO ) of Matrimony.com , which owned online match making portal BharatMatrimony, kicked off on Monday.The company expects to raise Rs 500 crore by selling shares in Rs 983-985 price band.The issue comprises fresh issue of up to Rs 130 crore and an offer for sale (OFS) of up to 37,67,254 shares. The company this weekend said it has allotted 22,93,277 equity shares at Rs 985 per share (including share premium of Rs. 980 per share) aggregating to Rs 225. 88 crore to 10 anchor investors including Goldman Sachs and HDFC Trustee company. Experts are mixed on the IPO with some brokerages recommending subscribe on the issue, as they see healthy listing gains, others are not that sanguine. For them, it is a clear 'avoid'.The brokerage expects the IPO proceeds to be gainfully utilised, leading to higher revenues from increased brand awareness and lower rentals and interest expenses.Focused expansion of its marriage services business through cross selling and assisted services could also help the company move up the value chain, it said."The stock is available at 51 times FY17 P/E with a 10 per cent discount to retail investors. It may be noted that the nature of the Matrimony.com business is not comparable to that of Just Dial and Info Edge," the brokerage said, while subscribing to the issue for listing gains.This brokerage noted three reasons to avoid the IPO."Although there could be fancy on the street for such a kind of consumer focused internet services company, but owing to weak financials (net losses in the past and erosion of net worth) we are not comfortable recommending the IPO," it said.The brokerage said that at the upper price band of Rs 985, the offer is valued at 46.2 times P/E on FY17 basis (post dilution). Although consumer internet services companies trade at premium valuation on account of their fancy on the street but in comparison to peers matrimony valuation looks stretched on account of weaker financials, it said. Besides, it noted that 74 per cent of the issue is Offer for Sale. Even if money raised at such valuations was flowing into the company, it would have ultimately belonged to shareholders, it said.This brokerage noted that BharatMatrimony earns its revenues largely from two segments: Match-Making Services and Marriage Services. While matchmaking services contribute 94 per cent to topline as of June quarter, Marriage services contributes the rest."The match-making services derive majority of its revenues from subscription charges the company imposes under various offerings. The company’s average realisations from paid subscribers consists of Rs 3,999, whereas the number of paid subscribers stood at 702,000 as of FY17."Given the fact the India is one of the largest markets undergoing a Digital Evolution in terms advancement of technologies. Mobile penetration and Internet Usage, we believe that BharatMatrimony stands to be a huge beneficiary given its push to mobile websites and mobile apps," it said. Also, the brokerage believes that marrige services segment has cross-selling opportunities and huge potential to scale up from current levels (of 6 per cent to revenue). Besides, it noted that the company has pricing Power due to strong brand image and that due to a de-linear business model, margin expansion is highly probable given that there is limited increase in employee cost and scalable realisations.The brokerage expects the company to come up with better top and bottom-lines, considering strong brand value, leadership position, robust technology and expansion into marriage services segment.It noted that given the strong user data base provides competitive edge to the company.At the upper end of the price band, the pre issue P/E multiples works out be 35.7 times of Q1FY18 Annualised EPS, which is lower compared to peers (Info edge is trading at 46.4 times its Q1FY18 Annualised EPS). It recommended the issue with a subscribe rating for a mid-to-long term period.As of June 30, 2017, they had 140 retail centres distributed across India where customers can walk in and register on their websites. Its flagship brand, BharatMatrimony, has 15 language based domains under its umbrella. They also have other portals like Elite Matrimony, Community Matrimony, Matrimony Directory, Matrimony Photography, Matrimony Bazaar, Matrimony Directory and Matrimony Mandaps.Brokerage Arihant Capital said that the technology is evolving at much faster pace than anticipated and hence if company fail to keep pace with changing technology it could adversely Impact Company’s growth."The issue has been offered in a price band of Rs 983-985 per equity share. At the upper price band of Rs 985 the stock is available at P/E of 48 (x) based on FY17 annualized EPS. We have “3 star” rating for the issue, it said.