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just dial ipo outlook 20th may to 22nd may 2013

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just dial ipoThe Indian telephonic search giant is sizzling to go ahead with its Rs 950 Cr. IPO offer opening on 20th May 2013 and ending on 22nd May 2013. After a long draught in the IPO market, this issue is expected to bring in some charm back into the primary market.

About Just Dial Operations

Just Dial is operating in the telephonic search services and it enjoys the advantage of early entrant in this business segment. It has approximately 9 million business listings along with a strong relationship with the advertisers. It provides services through the internet, voice channel (Mobile and Telephone) and mobile internet platforms. It is operating in a distinctive domain with very less competition.

The Issue description is as given below:

Issue Details



Public offer of 17,497,458 equity shares of Rs. 10 each, being made through 100% book-building process.

Issue Period

20th May to 22nd May 2013

Price Band

Rs 470  to Rs 543  (10% discount to Retail Investors)

Bid Lot

25 Equity Shares & in multiple of 25 Equity Shares thereafter


10% Discount to Retail Investors

Issue Size

Rs 950.11 crore (approx.)

Safety Net Arrangement

A safety net to resident in India in accordance with Regulation 44 of the SEBI Regulations and as set out in the section Safety Net Arrangement on page 372 of RHP.


Karvy Computershare Private Limited

Book Running Lead Manager

Citigroup Global Markets India Pvt. Ltd.; Morgan Stanley India Company Pvt. Ltd.


Proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Issue Break up

Total 17,497,458 Equity Shares


75% of Net Issue Size


15% of Net Issue Size


10% of Net Issue Size

IPO Grading

IPO Grade 5/5 by CRISIL

CRISIL’s IPO Grade 5 to Just Dial Ltd is bassed on its ‘Strong Fundamentals’. The IPO grading with Grade 5 indicates a strong fundamentals whereas Grade 1 indicates poor fundamentals when evaluated on a grade point between 5 to 1.

Should You Apply?

Investors can look forward to apply for this IPO in a positive note. Following are the reasons that make IPO outlook to be positive for investment:

  • Strong Market Presence


    Just Dial services are available all around with ease of free inquiry and it has laid down a strong presence in the voice search domain. It had started the telephonic search for the first time in the country and therefore it also takes advantage of being the first mover in this business segment.

  • Big Expansion Plan:

    The company plans to venture into new geographical areas and expand its business reach. The experience and strength supports the plan well.

  • Phenomenal Valuation:

    Just dial earns most of its revenue from the paid advertisers. It receives most of the fees in advance, therefore the working capital cycle is almost negative. The company’s balance sheet looks more attractive due to a debt free and cash rich position. The company is diluting a part of its equity and it can further take use of the debt instrument to leverage its financial position for further expansion in the future.

Apart from the positive side, there are a few negative notes for Just dial IPO. The company’s maximum business comes through google search engine. At present, google is not operating in telephonic search business, but in future if it plans to step into such services, then it can create a threat to Just Dial business. The appropriate use of fund is important, but business diversification is also required to reduce the risks.


Looking at the niche business, good valuation and big expansion plan of Just Dial, investors can take take a chance to apply for this IPO, the probability of shares being allocated will improve if multiple applications are used i.e. through the Demat of relatives, spouse etc.


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