facebook-page-view
Advertisement

Just Dial sees applications for 70% of IPO at end of day 2

By TEAM VCC

  • 21 May 2013
Just Dial sees applications for 70% of IPO at end of day 2

Just Dial Ltd, which runs the India-specific local business listings site Justdial.com, has crossed the two-thirds mark with its initial public offer (IPO), registering applications for around 70 per cent of the issue on Tuesday. The IPO, which closes on Wednesday, will set the tone for investor appetite for Internet firms in India and help set a benchmark for valuations in the business.

Exchange data shows the IPO subscription has been led by institutional investors who have applied for 90 per cent of the issue reserved for them, with one day to go. Retail investors have also applied for around 70 per cent of their portion but HNIs and corporates have not been too enthused by the issue.

IPOs in India typically see investors coming in droves on the final day. At the end of day 1, half of the IPO was covered which means day 2 was slower in terms of fresh applications.

Advertisement

The firm had earlier raised Rs 208.66 crore or approximately $38 million from anchor investors, including Singapore sovereign wealth fund Temasek and asset management major Fidelity. The Mumbai-based firm sold 3.94 million shares to 15 anchor investors at Rs 530 per share. Just Dial is looking to raise as much as Rs 936.8 crore through its issue.

The firm has set a price band of Rs 470-Rs 543 for the maiden public float. The issue solely comprises secondary sale of shares and will be the largest public offering by an Indian Internet company. Just Dial has offered 13.5 million shares in the IPO after the portion allocated for the anchor investors.

Citigroup Global Markets India and Morgan Stanley India are the book running lead managers to the issue.

Advertisement

Share article on

Advertisement
Advertisement