Thursday, 9 January 2014

Just Dial: Most Promising IPO of 2013.

What is IPO?

An Initial Public Offering (IPO) or stock market launch is a type of public offering where shares of stock in a company are sold to the general public, on a securities exchange, for the first time. Through this process, a private company transforms into a public company. Initial public offerings are used by companies to raise expansion capital, to possibly monetize the investments of early private investors, and to become publicly traded enterprises

Last year when Just Dial announce IPO most people thumps up this company and Just Dial  doubles money for it subscriber after only 6 month of getting listed .
Let’s check out how Just Dial becomes multibagger and hottest stock recent days.

On May 20th 2013 Just dial IPO open for subscription with price band 470-543 for May 20-May 22. CRISIL has assigned grade 5/5 to the proposed IPO of Just Dial. Out of 17.5 million shares, 13.5 million shares were offered to the public and 3,936,925 shares have been subscribed to by 15 Anchor Investors at 530 INR per equity share, for a total of around  208.65 Crore. Just Dial has reserved 75% of its IPO for institutional investors, 15% for high net worth individuals (HNIs) and remaining 10% for retail investors.

Just Dial adopted a scheme "safety net" for retail investors proposed by the capital market regulator Sebi in 2012 where the company promoters assure that they will buy back shares from the retail applicants at the IPO price, if its stock falls sharply during the first six months after listing.

At the end of day 1 A majority of the bids came from Foreign Institutional Investors (65, 87,275 shares), around 72% of total shares on offer for QIBs. Retail investor appetite was low, with only 14% (246,200) of shares, whereas 1,749,745 shares were offered to them. HNIs bid for only 3750 shares of the 2,624,618 shares offered for them.

At the end of day 2 Retail investor participation increased almost fivefold after a fairly low key participation on day one of Just Dial’s IPO: Total bids from retail investors increased to 1,224,725 shares from 246,200 shares at the end of day 1. Thus, around 70% of the total 1,749,745 shares that retail investors were allowed and most of them have been at the cut-off price. Participation from Qualified Institutional Buyers (FII’s and Mutual Funds) also increased, with Mutual Funds finally participating, but bidding only for 56200 shares. FII’s have bid for 8141850 shares in all. Participation from Corporates and Individuals other than retail investors has been insipid. All in all, around 69.62% of the shares on offer have been bid for, mostly by QIBs, which sets the stage for day 3. On day 3 of issue, Just dial IPO was over-subscribed 11.63 times

 On June 05, 2013, the equity shares of Just Dial Ltd are listed on BSE and NSE. Since then
Stocks do not look back. In September’s Q1 result company book 28.66 Cr Net profit.

On 8th January 2013 Just dial close at 1423 INR with market capital
10,001.45 Cr.

Just Dial: Underline business and History.

Just Dial is an Indian company providing local search services over the Phone, Web, Mobile and SMS. It is headquartered in Mumbai, Maharashtra. Users are required to call a common number and simply tell the human operator what service they are looking for. Text and email alerts are then sent to users listing the best options around them.

Just dial was founded by V.S.S. Mani and performs in the capacity of the Managing Director and Chief Executive Officer of the Company.  Mr.Mani thought of the idea while working for Yellow Pages Company called United Database India (UDI) in 1987. He felt that the information could prove to be much more useful if it could be provided over the phone. In 1996, he came to know that Mumbai's Kandivali exchange owned the number 088 888 88 888. He was well aware of the importance of having an easy to remember number for a service like this and he somehow persuaded the GM to allot the number to him. Mr Mani started the company with a few pieces of borrowed furniture, rented computers, a 3x5 feet garage which he took on hire and a seed capital of 50,000 INR.

Sooner Just Dial signs Amitabh Bachchan as a brand ambassador. Mr Amitabh Bachchan was allotted 62794 shares at a price of 10 INR in January 2011. His investment cost was 6.27 lakhs which is on 8th January worth 8.93 Cr.

Currently Just Dial provides service to user 24*7 by helpline numbers 08888888888 and 699-999-99. Other than this and (Accessible from mobiles) are web services for internet user.

Very few companies can become as big brand over the time and Just Dial is on the way of that.
If you are in India and If you need any help Just Dial 08888888888.

Be smart. Invest smartly.