A sharp rally in the shares of Justdial has helped Bollywood superstar Amitabh Bachchan'sinvestment in this local search engine to more than double injust about seven months to Rs 10 crore.
The value of shares held by Bachchan in Just Dial hasshot up from Rs 3.83 crore on the day of the company's listingon 5 June 2013, to Rs 10 crore now -- marking a gain of about161 percent in this period.Within seven months of entering the capital market, theshare price of the company has zoomed from Rs 611.45 on debutto Rs 1,603.5 apiece now, as per its last trading value on 3 January, when the stock also touched an all-time high of Rs1,648. This all-time high hasmade Justdialarguably the most valued Indian consumer tech venture.
Justdialhad signed up Bachchan as its brand ambassadorin December 2010 for a period of three years.
According to a disclosure by the company in its IPOprospectus, Bachchan was given 62,794 shares at a price of Rs10 each in 2011.Originally, Bachchan's 62,794 shares were valued at Rs6.27 lakh. The value of these shares spurted to Rs 3.83 croreon the day of listing itself, when the price hit Rs611.45. Now, these shares are worth about Rs 10.06 crore
According to a VC Circle report, JustDial's current market cap is worth Rs 11,235 crore or $1.8 billion, which in effect pushes it ahead of India's biggest consumer e-commerce venture Flipkart, which was valued at $1.6 billion in the latest funding round. Just Dial recently entered the e-commerce spaceafter its search plus services went live last month. One can search for a product and browse through a list of vendors in their surroundings along with their offer price.
Moreover, Just Dial is now worth more thanthe combined market cap of the two other significant listed consumer internet ventures from India-Info Edge (which runs Naukri.com, jeevansaathi.com, etc) and MakeMyTrip.com.
Earlier, Just Dial used to generate revenues from ads and paid listings on its platform. Justdial's revenues are growing at 30 percent year-on-year and the company hopes to sustain the momentum and add to margins.Last month, it also launched the 'Search Plus' engine through which customers can make bookings for restaurants and place orders for merchandise. In other words, itfacilitates the purchase of various branded goods such as mobile phones, cameras, etc. from neighborhood stores participating through this platform.
"It is a unique platform for users to discover best prices for the product. It also provides them an opportunity to discover the prices of offline store," Ramkumar Krishnamachari, CFO of Just Dial, had said in an interview with CNBC-TV18. However, Just Dial will notbe involved in fulfilment of products or services, nor will it build warehouses or own any inventory.
The company expects to sell a few of its services in two months via fixed fees and commissions on sales.JustDial is currentlyfocusedon generating more traffic on the platform to monetise its services.
According to Krishnamachari, thisis a unique platform for users to discover prices of offline stores. For example if you are ordering a Samsung phone or a Nikon camera you will find the neighborhood stores in your area in this marketplace and users can get the things delivered in 3-4 hours' time.
"What we are doing is simply bridging the gap that exists today between those offline stores and millions of users who are doing transactions and giving them an online discovery and offline fulfillment. So you will see that a lot of these prices for many of these goods will be competitive as compared to any of the online-plus-same-day delivery in most of the cases," Krishnamachari told CNBC-TV18.
Other services such as ordering of flowers, groceries and fixing appointments with doctors, bus ticketing, rail ticketing, air ticketing, and hotel booking, among others, will also to be introduced on the platform after obtaining the necessary approvals.
JustDial, which listed on the stock exchanges in June2013, was among the few new firms that have been successful on Dalal Street last year. Many others are trading belowtheir IPO issue prices.
The company's stock has outperformed the BSE's benchmarkSensex that rose by around seven percent during the period.
Founded by VSS Mani, the company started offering localsearch services in 1996 under the Just Dial brand. Besides,the company's Rs 950-crore IPO was the biggest issue of 2013.
With inputs from PTI
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Updated Date: Dec 21, 2014 01:32:22 IST