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Just Dial defers IPO plan; raises Rs 327 crore from PE funds

02 Jul 2012 Evaluate

The much awaited initial public offering (IPO) of the local search service provider has been deferred, as the company has raised Rs 327 crore from two Private Equity Funds viz., Sequoia Capital and SAP Ventures. Just Dial is the third investment of Sequoia Capital who has infused Rs 305 crore while SAP Ventures has invested Rs. 22 crore. This is the fifth time that Just Dial has raised money through funding which according to it gives flexibility to list next year at a better valuation.

The company had filed the draft red herring prospectus with the Securities Exchange Board of India in August 2011. Citigroup Global Markets India and Morgan Stanley India were the book running lead managers and Karvy Computershare was the registrar to the issue.

Just Dial was looking forward to raise Rs 360 crore from this issue which it intended to utilize towards enhancement of its brand through advertising and other brand-building activities, establishing new offices, procurement and upgradation of computer hardware. The company now plans to go public in 2013.

Just Dial is enjoying the advantage of being first in the industry with its robust business model which is a well known brand and is constantly updated with latest technology. Just Dial offers its services through telephone, SMS, Internet and mobile Internet and has been a flagship in the industry which has made its competitors difficult to replicate the business model. The search engine had answered over 180 million search queries of millions of users from various platforms.

The company targets at providing fast, free, reliable and comprehensive information to its users, which expand its network and add more search queries. The primary revenue for the company is generated via its paid advertisers who subscribe to the campaign packages or membership in order to receive priority on the search engine.

Just Dial Share Price

549.75 5.55 (1.02%)
17-Apr-2026 16:59 View Price Chart
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