JustDial eyes Rs 950 cr from IPO, issue opens on May 20 | business | Hindustan Times
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JustDial eyes Rs 950 cr from IPO, issue opens on May 20

business Updated: May 13, 2013 19:08 IST

Local search engine JustDial on Monday said that it will hit the capital markets on May 20 to raise up to Rs 950 crore through an initial public offer.

The offer will see promoters and other investors shedding 17.49 million or 25.2% of the paid up equity capital. Post issue the promoters will hold 33% in the company and the issue does not involve the company issuing fresh shares, but selling existing ones.

The city-based local search engine, backed by foreign investors like Sequoia Capital, Tiger Globe, and promoted by Mani family, will dilute their stakes trough offer for sale route, the promoter and managing director VSS Mani said.

He also said the company has fixed a price band of Rs 470-543 per share, which carries a face value of Rs 10.

The issue will remain open till May 22, adding it is offering a 10% discount to retail investors who will also get the safety net option.

When asked about the hefty premium, Mani said it is arrived at the i-bankers and indicates the strong fundamentals of the company, which had a cash balance of Rs 475 crore and a revenue of Rs 275 crore as of March 2012.

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

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