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Leading local search engine Just Dial Ltd has received the go-ahead from market regulator Sebi (Securities and Exchange Board of India) for its proposed initial public offering (IPO).
The company had re-filed its draft red herring prospectus (DRHP) with Sebi in August last year for the proposed public offer.
Sebi issued its final observations on the draft offer documents on March 20, according to the latest update by the market regulator. The regulator's observations are necessary for the companies to launch any public offer.
The regulator had received the draft offer documents on August 14 through its merchant banker Citigroup Global Markets India. Besides, Morgan Stanley India is the other book running lead manager to the issue.
The company plans to sell 95.54 lakh equity shares of face value Rs 10 each. However, Just Dial itself would not receive any money out of the issue as funds garnered would go to selling shareholders including Sequoia, SAIF and Tiger Global.
"The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges and to carry out the sale of 95.54 lakh equity shares by the selling shareholders," Just Dial said.
"The listing of the equity shares will enhance our brand name and provide liquidity to the existing shareholders. Listing will also provide a public market for the equity shares in India. Our company will not receive any proceeds from the offer," it added.
In July last year, the company had raised about Rs 251 crore from private equity investors Sequoia Capital India and SCI Growth Investments.
Just Dial had first filed the draft documents with the Sebi for an initial public offer in August, 2011 and was planning to raise over Rs 400 crore. The plan got scrapped due to a sharp fall in the stock markets.
