Justdial IPO subscribed 12 times on last day

The IPO of Justdial was subscribed 12 times over, with every share in this year's largest IPO receiving a dozen bids

Investors bid for over 50 million shares against the 13.5 million shares on offer, according to exchange data. Justdial, which describes itself as a 'local' search engine, has managed to raise nearly Rs 1,000 crore through the initial sale of shares.

Institutional investors had issued subscriptions for 92 million shares against the 91,00,000 shares that had been offered, resulting in an oversubscription of 10.1 times in that category. The high net worth individual category was oversubscribed 22 times with 26,00,000 shares on offer. Retail investors, who have largely remained inactive owing to poor market conditions, saw their category get subscribed 3.3 times.

“This is a concept company...like a 'Google of India'. It has a good management, the IPO size was decent and the issue was fairly priced. So, we are not surprised by the response it garnered," said Sandeep Singal, co-head - institutional equity, Emkay Global Financial Services.

This is the biggest IPO in calendar year 2013, which has so far seen five IPOs, including Justdial. Of the four, Scotts Garments' IPO was called off due to lack of investor response.

The IPO opened on May 20 and closed today. The price band for the issue was fixed at Rs 470 — Rs 543, with retail investors being given a 10 per cent discount or Rs 47 per share. The company was looking to raise about Rs 950 crore with many early investors in the company selling their stakes for multiples of their original investment.

Justdial provides search services across two main categories; company search - specific or any business – and category search - product or service based on a given classification. The company generates revenue from advertisers who pay for priority ranking in search results.

Rating agency CRISIL had given the company an IPO grading of 5/5.

The investment bankers to the issue were Citigroup Global Markets India and Morgan Stanley India.

Justdial has also mopped up over Rs 200 crore through placement with anchor investors at a price of Rs 530 per share.

The anchor investors include Goldman Sachs India Fund, HSBC Bank (Mauritius) Ltd, Birla Sunlife Trustee Company Pvt Ltd, DSP Blackrock Opportunities Fund and Deutsche Securities Mauritius Ltd, according to a company release.