Just Dial has announced that it will raise up to Rs 950 crore through an initial public offer (IPO), which is scheduled to be launched on 20 May. It has set a price band of Rs 470 to Rs 543 per equity share. It will remain open for subscription till 22 May.
Here's what you need to know about the Just Dial IPO:
Just Dial will raise anywhere between Rs 822 to Rs 950 crore depending on the final issue price. Retail investors will get a discount of 10 percent on the issue price.
The promoters and existing investors are selling stake and the public issue will see the company sell 25 percent stake which will bring down the promoter group holding from 37.15 percent to 33.13 percent.The management says it is a sale by existing shareholders because the company does not need money.
The proposed valuation of the company stands at Rs 3300-3800 crore. Citigroup is the book manager for the IPO.
The company has no listed peers in the country. Justdial is a 16-year-old company but the management says it is still early days as internet penetration in India is low compared to the US where it is about 80 percent. The company sees internet penetration grow to 40 percent in India through smart phone devices in the next 5-7 years.
According to the management and the company's bankers, growth prospects in India's internet space will make JustDial a hot pick among investors. However, not all are optimistic. Some analysts CNBC-TV18 spoke to said that the IPO will primarily help existing investors unlock value while newcomers won't get a bite of the newfangled growth story.
Justdial has evolved from a voice-based local search company to a complete internet offering company.
The investors of JustDial include SAIF Partners, Sequoia Capital, Tiger Global, EGCS and SAP Ventures.