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Just Dial gets SEBI’s nod for IPO

VSS Mani, photo credit: INSEAD

VSS Mani, Pic credit: INSEAD

Mumbai-based Just Dial Ltd, which runs the India-specific local business listing platform Justdial.com, has received approval from the market regulator Securities and Exchange Board of India (SEBI) to go ahead with its proposed initial public offering (IPO).

SEBI approved the issue on March 20. However, it could not be immediately ascertained when the company is looking to hit the market with the issue. Repeated calls to founder VSS Mani went unanswered till the time of posting this article.

SEBI’s approval for a public issue is valid for one year, after which companies must refile their documents and approach the regulator again for an issue.

Just Dial’s IPO is expected to be the biggest public issue by an Indian company in the consumer internet business. It is looking at a valuation of over Rs 4,000 crore (more than $720 million), a source had earlier told Techcircle.in. This would pitch it right next to Info Edge (India) in terms of market value of a listed consumer internet firm in India and ahead of NASDAQ-listed OTA MakeMyTrip.

The company’s IPO plan only involves share sale by existing investors who are estimated to exit with a multi-bagger. Investors like SAIF Partners, Tiger Global Management and Sequoia Capital are set to make over 10x (10 times the capital invested).

Just Dial filed its first draft red herring prospectus (DRHP) in April last year and also got SEBI’s approval at that time. However, certain changes in the capital structure due to an investment forced the company to re-file the DRHP in August 2012.

This came within weeks after the firm raised Rs 327 crore ($57 million) from existing investors Sequoia Capital and SAP Ventures in one of the largest pre-IPO round of venture funding.

Founded by VSS Mani in 1994, Just Dial is a local search firm that covers both B2B and B2C space and lists small and medium businesses across the country. It provides services across multiple platforms, including the internet, phone, wireless and print. The platform has 7.7 million listings as of June last year and follows a B2B model where local businesses pay for listings, to be featured among the company’s search results on a priority basis.

Earlier this month, the company entered into an agreement with a large restaurant chain that will enable consumers to use its mobile/web platform to place orders for home delivery of food.

(Edited by Sanghamitra Mandal)

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