TMT
By 31 May, 2013
Just Dial fixes IPO issue price, values firm at $655M

Just Dial Ltd, which runs the India-specific local business listings site Justdial.com, has fixed Rs 530 as the issue price in its recently completed initial public offering (IPO). This is closer to the upper end of the price band of Rs 470-Rs 543 in the maiden public float.

The firm said it would sell shares to the public at a discount and the retail shareholder’s cost of subscription is Rs 483 per share. The total public issue was worth Rs 919.14 crore, constituting 25.02 per cent of the fully diluted post-offer paid-up equity share capital of the company.

The issue received an enthusiastic response and was oversubscribed over 10 times. Although subscriptions were initially led by institutional and retail investors, high networth individuals (HNIs) and corporates also emerged as some of the largest buyers during the last hours of the issue period.

The successful IPO also signifies investor appetite for internet firms in India and helps set a benchmark for valuations in this space in spite of mixed analysts’ views on its aggressive valuation pitch.

At the issue price, the company would command a market valuation of Rs 3,703 crore ($655 million).

Singapore’s sovereign wealth fund Temasek and asset management major Fidelity were among the anchor investors who picked up shares at Rs 530 a piece.

The offer for sale has resulted into multi-bagger returns for the company’s early investors including SAIF Partners, Tiger Global, Sequoia Capital and SAP Ventures. For more details on returns for individual investors, click here.

(Edited by Sanghamitra Mandal)

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