Just Dial Post Issue Analysis

Just Dial (JDL) had tapped the primary market in the month of May 2013 to raise Rs 950 crore. The price band set for this issue was between Rs 470 - Rs 543 per share. It has succeeded in fetching around Rs 900 crore through this issue. As the issue is an offer for sale (OFS) to provide an exit path for the private equity investors, there was not much for the retail individual investors (RIIs). 

The company had tried to attract RIIs by providing a 10% discount on the floor price along with a safety net of up to Rs 50,000. The offer got over-subscribed 12 times, in which the major contributors were QIBs and non-institutional investors. 

The scrip got listed on the bourses on June 5, 2013 at a premium of Rs 590 per share. It closed at Rs 611, providing gains of 15% over the issue price. At present, the scrip is trading at Rs 608, down by 0.71%. 

We, at Dalal Street Investment Journal, have recommended that investors ‘avoid’ the IPO and we maintain our stand on this scrip. Based on the issue and first day trade, the company has provided good returns to its investors, but it does not have much space in the long-run. In the local search space, JDL is performing well and has good brand recognition too. We thus need to wait till the company achieves some stability and creates a good momentum for investors.