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Financial Modeling Just Dial IPO

November 2, 2011
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imageJust Dial is a leading local search engine providing users of its “Just Dial” search service with information and user reviews from its database of local businesses, products and services across India. Its search service is available to users through multiple platforms. As one of the first companies to offer local search services in India, it enjoys a first mover advantage among consumers seeking information on local businesses.

Just Dial's revenue comes from conducting campaigns for paid advertisers. Its business model involves charging local businesses a fee for listing which can be between Rs. 3,000 to a few lakhs. It provides both B2C and B2B listings of small and medium business advertisers. The service is free for consumers.

In June 2011, private equity firm Sequoia Capital, along with SAP Ventures invested $10 million in the company. At that time, it valued the company on par with two-wheeler manufacturer TVS Motors. The company over the years had sold many preference shares which were converted into equity and had also issued bonus shares as high as 55:1.

Investors in Just Dial such as SAIF Partners, Tiger Global, and Sequoia Capital hold about 55% of the company. These firms may sell a part of their holdings during the IPO, according to the draft prospectus. About 10.6 million shares will be sold by existing owners, said the document, without mentioning the specifics.

Just Dial's share sale, through book build route, will see at least 50% allotted on a proportionate basis to qualified institutional buyers, not less than 15% to non-institutional bidders and not less than 35% to retail individual bidders. Citigroup Global Markets India and Morgan Stanley India is the book running lead managers to the issue.

You can find the Financial Model of Just Dial.


About the Author

Pankaj Baheti is a CFA Level III Candidate currently working with Pristine. Prior to Pristine, he was working with Achi Group. He has done his Post Graduate Diploma in Management and loves trekking in the hills of Arunachal.


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