Despite of all odds, Just dial IPO is doing surprisingly well, latest in terms of subscription. As per the data available on Moneycontrol, the IPO has been subscribed 70 percent so far. The IPO will be closing today.
The offer is being made through 100% book building process wherein at least 50% of the offer is being allotted on a proportionate basis to Qualified Institutional Buyers (QIB), 15% to the Non Institutional buyers and 35% to the retail Individual Buyers.
So far, the reserved portion of QIBs was subscribed 89 percent while that of retail investors was 70 percent subscribed of the total shares offered by the company.
As reported, through its anchor investors, Goldman Sachs India Fund, Birla Sun Life and others, the company has already raised more than INR 208 crore, through issue of 39.37 lakh equity shares at a price of INR 530.
According to the industry experts, the Just Dial IPO is quite overvalued but with safety net scheme of 180 days and a discount offer of 10%, retail investors can subscribe the issue for listing gains.
As commented by a leading brokerage house, with online advertising market gaining its reach among the masses due to its cheaper cost, the sector is growing at a very fast pace. Justdial has surely taken advantage of this shift as the number of campaigns on its platform have grown from 40,500 in March, 2009 to 195,100 in March, 2013.
Though the industry has its own ifs and buts with Just Dial IPO, the real picture will be revealed after the disclosure of issue price and the total issue subscribed at the close of the issue. Also, it would be worth noticing whether the Just Dial IPO will be able to give the same post issue performance as well.