Should I Invest in Just Dial IPO Stock Market

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Initial Public offering or IPO are issued by small companies seeking expansion of capital. Privately owned large companies can also seek IPOs to become publicly traded. In an IPO, the issuer obtains assistance of an underwriting firm, which helps to determine the type of security to issue, best offering price etc.

Justdial is India’s first voice based search company debuted on the stock exchanges at a sharp premium to its offer price.

Key features:

The Justdial IPO drew strong response from foreign institutional investors. The company provides search services through internet, mobile and telephones. Selling advertisements and qualified leads is the main source of justdial. The key highlights of the company are:

  • Has a high growth phase
  • Has asset-light business model.
  • Monopoly in voice search segment
  • High free cash flows
  • Provide safety net for retail investors i.e, to tone down the risk perception of the investors.
  • Provides discount for retail investors.

Justdial ipo performance has shown a rise of Rs. 950 crores through the IPO. The stock surged as much as 19%, hit a high of Rs. 631.90. The investors received the shares at 15 percent premium to the price. Floating shares in the open market and trading them in public stock exchange is an ideal option for a venture capital investment.

Future prospect

Justdial is the biggest IPO in the calendar year 2013. The aim of the Justdial stock market is to

  • Achieve the gains of listing the equity shares on the stock exchange.
  • Sell the equity shares by the Selling shareholders.

Companies with niche business will continue to see good investors. If the investors receive gains on the listing day, Justdial ipo performance will surely show further improvements. The listing of equity shares will enhance its brand name. This will help in providing public market for equity shares.

  • Company is coming up with new offers for sale
  • Company has reserved shares for the retail shareholders.
  • CRISIL rated IPO grade 5 which indicates strong fundementals.

The company has been able to build strong brand in the local search space. The Justdial has a unique business model and heavy institutional interest can be expected from this issue. However, investors should be aware of the emergence of disruptive technologies. Justdial stock exchange needs to be concerned about anticipating changes in technologies and predicting user behaviour to maintain its market share.

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