India’s Just Dial IPO to raise up to $174m
Indian search engine Just Dial is on course to raise INR9.5 billion ($173.7 million) through its IPO later this month, allowing VC backers Sequoia Capital, SAIF Partners, Tiger Global, ECGS and SAP Ventures to make a partial exit.
Existing stakeholders will sell 17.49 million shares - or 25% of the company's enlarged share capital - at INR470-543 apiece.
The VC investors plan to offload a larger stake than originally stated in the draft red herring prospectus. Sequoia will sell 3.2 million shares, SAIF will sell 5.9 million shares, and Tiger Global will exit 2.8 million shares and 1.7 million shares owned by separate funds. EGCS and SAP Ventures will sell approximately 647,793 shares and 328,296 shares, respectively.
Just Dial's founders, CEO V.S.S. Mani and COO V. Krishnan, will trim their holding from 37.1% to 33.1%. As a safety net for retail investors, typically those who invest INR200,000 or less, the promoters will buy back a portion of the stock if it underperforms. A discount of 10% to the floor price is also being offered to retail investors.
Just Dial is the second internet company to go public in India after Info Edge raised INR1.7 billion in 2006. Travel website MakeMyTrip listed on the NASDAQ in 2010, raising $80.5 million.
The company addressed over 250 million search queries from users in the 2012 fiscal year and ran approximately 181,000 campaigns for paid advertisers. It reported a net profit from continuing operations of INR522.8 million, up 81.4% year-on-year, as revenue rose 47.6% to INR2.77 billion.
Just Dial abandoned a previous attempt to list last year due to market uncertainty. It refiled its draft red herring prospectus in August and the Securities and Exchange Board of India (SEBI) issued final observations on the documentation on March 20.
Sequoia and SAP invested INR3.27 billion in the company in June after the first attempt at an IPO failed. It previously raised $15 million from a SAIF-led group in 2006, $20 million from Tiger Global and $10 million from Sequoia in 2009, and then $7.5 million from SAP and Sequoia in 2011.
The IPO is being run by Citigroup Global Markets and Morgan Stanley.
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