Just Dial investors to offload more than 95 lakh shares

Investors of Just Dial, the company that runs the local search engine Justdial.com, have decided to offload  95.54 lakh shares through an initial public offering (IPO).

 Just Dial, on August 13 filed its draft red herring prospectus (DRHP) and is waiting for Sebi approval for the offering.The offer would constitute 13.53 per cent of the fully diluted post-offer paid-up equity share capital of the company at a face value of Rs 10 each.

Among investors, SAIF Partners has decided to sell the most number of shares at 40,32,059 shares; Sequoia III would be selling 10,41,426 equity shares; Tiger Global Four JD Holdings would be offloading 25,11,649 scrips; Tiger Global Five Indian Holdings’ share of sell would be 15,57,252 along with some other investors.

Speaking to Deccan Herald, Just Dial Chief Financial Officer Ramkumar Krishnamachari said, “This IPO is purely offer for sale only (secondary sales by some of our existing shareholders) and there is no primary component, hence we don’t plan to raise any money in to the company through this IPO.”  

In August 2011, Just Dial had filed its first DHRP with Sebi to raise more than Rs 300 crore but it did not work well owing to tough market conditions.  

However, in July this year, it got an investment of about Rs 327 crore from Sequoia Capital India and SAP Ventures.

Asked if there is any change in IPO plan after the investment received recently, Just Dial’s Krishnamachari added that, “There is no change of plan as such and the current filing of the DRHP is very much in line with our listing plans.”

Book running lead managers to the deal are Citigroup Global Markets India and Morgan Stanley India.

The book building process would have at least 50 per cent shares for qualified institutional investors and 15 per cent for non-institutional investors.