Just Dial Makes Smart Market Debut; Scrip Surges Over 14 Percent

By siliconindia | Thursday, 06 June 2013, 04:44 Hrs

Mumbai: Local search engine Just Dial made a stellar stock market debut with its share price surging over 14 percent against the issue price of 530 apiece.

After surging 19.22 percent to 631.90 in intra-day trade, the scrip finally ended at 605, up 14.15 percent from its previous close on the NSE.

More than one crore shares of the company changed hands on the NSE during the day.

"The tremendous response to Just Dial IPO is an indication that the dull spell in the primary market is likely to end soon and we should see more issues in the next 2-3 months," said Vikas Jain, Founder, Aditya Trading Solutions.

"The company provided a safety net to the retail investors, which clearly worked in its favour and will definitely revive the investors' lost confidence in the primary market," he added.

The company had recently raised 950 crore through its IPO.

Just Dial's issue, which was the largest offer by an Indian web-based and local search engine company, was subscribed almost 12 times. Besides, it is the biggest initial public offer (IPO) in calendar year 2013 so far.

The Just Dial IPO drew a strong response from Foreign Institutional Investors (FIIs) and high net-worth individuals.

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

Under 'safety net', 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 would be subject to a maximum of 1,000 shares per allottee.

Meanwhile, the broader market saw flat trading, with the BSE benchmark Sensex rising by 22.44 points to close at 19,568.22 and NSE's Nifty was up 4.40 points to 5,923.85.