Just Dial IPO over-subscribed 11.63 times on last day

In a strong investor response, the initial public offer of local search engine Just Dial, the largest offer by an Indian Internet company, was subscribed 11.63 times on the last of issue today.

In a strong investor response, the initial public offer of local search engine Just Dial, the largest offer by an Indian Internet company, was subscribed 11.63 times on the last of issue on Wednesday.

The Rs. 950-crore IPO, the biggest issue so far this year, received bids for over 15.76 crore shares, as against 1.35 crore shares on offer, data available on the NSE till 1800 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.

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.

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