JustDial, the IPO-bound local information services business, reported a 50% subscription of its shares, with 6,837,225 shares of the 13.5 million shares offered to the public being subscribed to. JustDial is looking to sell 17.5 million shares priced between Rs 470-543 each, thereby raising between Rs 822 to 950 crores from its issue, but 3,936,925 shares have been subscribed to by 15 Anchor Investors at Rs 530 per equity share, for a total of around Rs 208.65 crore.
JustDial has reserved 75% of its IPO for institutional investors, 15% for high net worth individuals (HNIs) and remaining 10% for retail investors. A majority of the bids at the end of day 1 came from Foreign Institutional Investors (6587275 shares), around 72% of total shares on offer for QIBs. Retail investor appetite was low, with only 14% (246,200) of shares on offer to them (1,749,745) bid for. HNIs bid for only 3750 shares of the 2,624,618 shares on offer for them.
Anchor Investors Subscription Details
Previous IPO Filing
It is worth noting that in its August 2012 filing of DRHP, the company had mentioned plans to only sell 9.55 million (9,554,307) shares of face value Rs 10 each, in return for 13.53% stake in the company and not 17.5 million shares. The 9.5 million shares included 4.03 million shares (4,032,059 shares) held by SAIF Partners, 2.51 million shares (2,511,649 shares) held by Tiger Global Four JD Holdings, 1.55 million shares (1,557,252 shares) held by Tiger Global Five Indian Holdings, 1.04 million shares (1,041,426 shares) held by Sequoia Capital, 347,142 shares held by EGCS and 64,779 shares held by SAP Ventures.
Just Dial has, until this offer, raised Rs 580 crore from Sequoia Capital, SAP Ventures, SAIF Partners, EGCS, and Tiger Global. These PE firms together hold close to 60% stake in the company. The company is said to be valued at Rs. 2,600 crore. During the filing, the company had informed that all the IPO proceeds would be going to its investors with the company not receiving any of the IPO proceeds.
On March 20, 2013, Justdial had obtained approval from Securities and Exchange Board of India (SEBI) for its proposed Initial public offering (IPO) following which the company was required to redraft its Draft Red Herring Prospectus (DRHP) for an IPO with SEBI. Justdial had originally filed its DRHP in August 2011 to raise Rs 360 crores. However, due to steep fall in the markets, the company decided to shelve the idea in June 2012 and instead, raised Rs 327 crores from Sequoia Capital and SAP Ventures, its existing private equity investors with Sequoia Capital as the lead investor investing Rs 305 crores. The company decided to revive its IPO plans in August 2012.
Founded in 1996 with initial investment of Rs. 50,000, Just Dial provides a local search engine for merchants across restaurants and retail stores to plumbers and pest control units via the Internet, WAP, SMS, telephone and native mobile apps across Android, Blackberry and iOS platforms. The company claims that 60% of its queries come from internet. Based out of Mumbai, Justdial also has offices across India in Ahmedabad, Bengaluru, Chandigarh, Chennai, Coimbatore, Delhi, Hyderabad, Jaipur, Kolkata and Pune. Justdial claims to have addressed 267.2 million search requests from millions of users across platforms as of December 31, 2012 with database of approximately 9.1 million listings as of March 31, 2013.