Just Dial IPO subscribed 194%

The initial public offer of local search engine Just Dial was subscribed 194 per cent with offers for 26.3 million share against 13.5 million shares on offer as the issue closed for subscriptions on the last day today.

The company has fixed the issue price band for the Rs950-crore IPO at Rs470-543 a share, which is the biggest initial public offer so far this year, stock market data showed.

The Mamba-based company, which provides search services over phone and web, will raise anywhere between Rs822 and Rs950 core depending on the final issue price.

The IPO portion for qualified institutional buyers (Sibs) has been subscribed 89 per cent, while non-institutional investors portion got just one percent subscription, as Tuesday's closing data on the NSE.

Retail individual investors category received 70 per cent subscription.

The company is offering a 10 per cent (Rs47) discount on the floor price of the shares to retail investors.

Just Dial will provide 'safety net' for retail investors. Under this, if the market value of the scrip falls below the issue price at any time during the scheme period, promoters will buyback shares at the sale price from original allotters. However, the buyback will be subject to a maximum of 1,000 shares per allotted.

Founded by V S S Mani, the company, which started offering local search services in 1996 under the Justdial brand, has already raised Rs208 crore by issuing shares to anchor investors, including Goldman Sachs and HSBC.

Citigroup and Morgan Stanley are the book-running lead managers to the issue.

The company plans to list its shares on the BSE, NSE and MCX-SX.