Just Dial lists at 11% premium to IPO price

Just Dial Ltd, which runs the India-specific local business listings site, listed at 11.1 per cent premium to issue price on Wednesday to become the largest listed Indian internet firm, overtaking Info Edge (India), which runs the job portal, as well as other sites. Just Dial scrip shot up nearly 18.6 per cent, from Rs 530 per unit issue price in the public offering to Rs 628.70 in early trade.

At the end of the first day, Just Dial scrip last traded at Rs 605 a share, up 14.15 per cent on its issue price, giving the firm a market capitalisation of Rs 4,227 crore or $745 million. Info Edge last traded at Rs 340 on Wednesday morning on the BSE, up 0.59 per cent, giving the firm a market capitalisation of Rs 3,712 crore. NASDAQ-listed online travel agency MakeMyTrip had a market cap of around $489 million.

The Just Dial issue received an enthusiastic response and was oversubscribed more than 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.

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, please click here.

(Edited by Sanghamitra Mandal)

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