NSE Symbol: JUSTDIAL | BSE Code: 535648
Justdial is search services company founded by Venkatachalam Sthanu Subramani Mani based in India. The company is headquartered in Mumbai, India. It has offices in Bangalore, Ahmedabad, Chandigarh, Chennai, Delhi, Coimbatore, Hyderabad, Kolkata, Jaipur and Pune. Just Dial was in the news on November 10, 2017 for anticipated acquisition by Google and based on this news the share prices of JustDial at NSE rose about 20%. Just dial share price today stands at 490.90 INR and market analysts predict the Just dial shares to perform well on an average for the financial year 2018-19.
Just Dial Share: History and Trends
Established in 1996, Justdial was founded by the current Managing Director and Chief Executive Officer of the company, V.S.S. Mani N.B, M.B. He began the company with six employees, some of them rented computers and borrowed furniture in a rented garage space. The idea was conceptualized by Mr. Mani while working for United Database India (UDI), a yellow pages company, in the year 1987. The number 2888-8888 originally belonged to Kandivali Exchange based in Mumbai but it was later acquired by Mani. He launched this concept after understanding the benefit of presenting such information over a call instead of it being stored in a book. However, the official institution of the company was on standby as Mani was unable to make the investment of 15,000 rupees for a landline service. The company was later launched with a seed capital of 50,000. With the internet penetration in the country rising, Mani decided to go online with Justdial.com in 2007.
In December 2015 Justdial had 10,198 employees. Justdial has a database of roughly 22.7 million listings and 452,900 actively paid campaigns June 2018.
In March 2012, Justdial had gained approval from Securities and Exchange Board of India (SEBI) for its aimed Initial public offering (IPO). Justdial had originally filed its draft red herring prospectus held by the Tiger Global Four JD Holdings, roughly one million shares held by Sequoia Capital, 1.55 million shares held by Tiger Global Five Indian Holdings, 347, 64,779 shares held by SAP Ventures and142 shares held by EGCS.
Justdial went public on May 2013 at a share price between Rs. 897-898. Out of the 17.5 million shares, 13.5 million shares were granted to the public and 3,936,925 shares were proposed to by 15 Anchor Investors at 530 rupees per equity share, for a cumulative amount of about 208.65 crores. Justdial had affirmed 75% of its IPO for institutional investors,15% for high-net-worth individuals (HNIs) and remaining 10% for common retail investors. CRISIL had assigned grade 5/5 to the recommended IPO of Justdial. This grade symbolizes that the fundamentals of the IPO are strong relative to other listed equity securities in India.
Unlike former public offers, Justdial embraced a scheme "safety net" for retail investors which was suggested by capital market regulator, SEBI in 2012 when the company promoters assured that they will buy back shares from the retail claimants at the Initial Public Offering price if its stock falls sharply during the initial six months after listing. On the end of day 1, a majority of the bids came from Foreign Institutional Investors and around 72% of total shares were bought on proposition for QIBs. Retail investor's appetite was low, with only 14% of shares sold to the retail investors, whereas 1,749,745 shares were tendered to them.
At the end of day 2, the retail investor participation grew almost fivefold after a relatively low-key participation on day one of Justdial’s IPO; around 70% of the total 1,749,745 shares that retail investors were offered, had been bid for, and most of them had been at the cut-off price. Participation from Qualified Institutional Buyers (which include FII’s and Mutual Funds) also rose, with Mutual Funds finally participating, but they were bidding only for 56200 shares of the company. FII bid for 8141850 shares in total. Participation from corporates and individuals apart from retail investors had been vapid then. Overally, around 69.62% of the shares which were offered were bid for by mostly the QIBs
The company’s opening price on the listing was 590 rupees on the NSE, which was at roughly an 18.1% premium to the IPO price of 483 rupees for the retail investors. Within six months time of its listing, JustDial gained 172% return. The stock reached an all-time high of 1,894.70 rupees on August 5, 2014, but only a year later, it reduced to triple digits.