Local search engine, Justdial today made its debut in dalal street and get listed on BSE and NSE with an opening price of INR 590, witnessing a rise of 11.32% on its fixed price INR 530, as displayed on NSE website. The issue saw the price hike of INR 631.90 and a low of INR 581.95 on its first day. At the end of the day, the issue closes at around INR 612.35.
As reported earlier, Justdial IPO has fixed its per share price at INR 483 for its retail subscribers giving a 10% discount and INR 530 for its HNI’s and Non-Institutional investors.
The share price per piece reaches a maximum of INR 631.90 at its opening, a 19.22% high from its initial fixed price. At 2pm, the share price was INR 607.75, up INR 77.75 from the fixed price of the public issue.
It seems that the retail investors are selling the shares at a fast pace, in order to take listing gain as at 11:51AM, the share price was INR 621.55 up 17.27%, and its continuously decreasing after that.
However. Arun Kejriwal, director, Kejriwal Research and Investment Services, who tracks the IPO market closely, said that as only 10 per cent of issue was meant for retail, there won’t be much selling pressure, which is typically seen on day one as small investors try to make an exit with listing gains.
As per the industry analysts and investment bankers, though Justdial has entered the secondary market with a boom, its listing will not help open up India’s IPO market in near term, given only a few medium-to-large sized issues are in the pipeline as the NSE index is up only 0.2 percent for the year.
“A lot of investors have become far more interested in the internet sector after the IPO. Being the next largest company in this sector, it is quite beneficial for us as well as the industry, as people now know that the sector exists, where money can be made and also more successful IPO’s or exits can be there.”, said Jaspreet Bindra, CEO, Getit Infomedia, one of the competitor to JustDial.
The public issue of Justdial got nearly 156,000 retail applications. Since, the issue was oversubscribed around 12 times, retail investors were allotted one lot of 25 shares each that too on a lottery basis with a allotment probability of 45 per cent.
As already stated, Justdial will be providing a safety net to the retail investors if the share price fall below the issue price under the proposed scheme, the company will buy back shares from the investors, however with a limit of 1000 shares per investor.