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May 22, 2013

Justdial IPO fully subscribed

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Just Dial
The local search engine, Just Dial has set a milestone in its business empire as its initial public offer (IPO) was oversubscribed on Wednesday by 1.94 times at the National Stock Exchange (NSE).

According to media reports, the company Justdial has issued IPO worth 950 crores, having the fixed issue price at Rs 470-543. The company’s IPO received bid of more than 2.63 crore shares against offer of 1.35 crores at the NSE.

Just Dial has also given a discount to attract more customers and also reportedly assured to buy back the shares if the markets price of the shares goes down during the scheme period - 'safety net'. That would be for the retail investors holding the stocks of the company. However, the company has also some limitation on buyback scheme that read it is subjected to a maximum of 1,000 shares per allottee.

In February 2011, the Bollywood actor Amitabh Bachchan had agreed to pick up about 63,000 shares at Rs.10 of Just Dial, now his investment in the company would worth Rs. 3.4 crore. He is also the brand ambassador of Just Dial, as he signed contract for three years with the company that would expire by December 2013.

Around 89 per cent of the IPOs were subscribed by the qualified institutional buyers.


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