Local search engine Just Dial IPO subscribed 70% on second day

Local search engine Just Dial's initial public offer, the biggest issue so far this year, was subscribed 70% on the second day of issue today.

The Rs 950-crore IPO received bids for over 94.4 lakh shares as compared to 1.35 crore shares on offer, data available on the NSE till 1700 hrs showed.

The company has fixed the issue price band at Rs 470-543 and will give Rs 47 (10% to the floor price) discount to retail investors.

The offer will close tomorrow.

Just Dial will provide 'safety net' for retail investors. Under this, if the market value of the scrip falls below the issue price at any time during the scheme period, promoters will buyback shares at the sale price from original allottees. However, the buyback will be subject to a maximum of 1,000 shares per allottee.

Founded by V S S Mani, the company, which started offering local search services in 1996 under the Justdial brand, has already raised Rs 208 crore by issuing shares to anchor investors including Goldman Sachs and HSBC.

Citigroup and Morgan Stanley are the book-running lead managers to the issue.

The company plans to list its shares on the BSE, NSE and MCX-SX.