JustDial plans to raise Rs 822-950 crore through IPO, opening in may

Just dial, the first phone based search engine in India, has set a price band between Rs 470-543 for its initial public offering (IPO) with lead managers, Citi and Morgan Stanley. The issue will be open for subscription between May 20-22, according to the reports

CRISIL, a global analytics company providing ratings, has assigned grade 5/5 to the proposed IPO of Just Dial which indicates that the fundamentals of the IPO are strong relative to other listed equity securities in India.

The IPO will raise somewhere around Rs. 822-950 Crore with a dilution of 25% stake of the selling investors including Sequoia, Tiger Global and SAIF. Also, as reported Just dial itself will not receive any money from the issue as funds received will go to selling shareholders.

The company had initially filed a draft red herring prospectus with the Securities and Exchange Board of India in August 2011, with the objective of raising Rs 360 crore from the public markets, but drop that plan mainly due to a weak public market.

Previous Funding

Launched in 1996, Justdial has grabbed funds in multiple investment series since its inception.

Series A, 2006 – $12 Million from SAIF Partners

Series B, 2007 – $15 million from Tiger Global Management

Series C, 2009 – $8 million from Sequoia Capital India

Series D, 2011 – $10 million from SAP Venture

Series E, 2012 – $57 million from Sequoia Capital India and SAP Ventures

Current status

Mumbai based Justdial has a huge local search database (9.0 mn products and service providers) and a difficult to replicate business model. In the last few years, it has successfully grown its paid campaigns by more than four times to 171,000 in end FY12 and the number of search requests had reached to 254.3 mn. It also enjoys the benefit of 100% advance payments from its clients, who are mostly micro, small and medium enterprises (MSMEs).

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