Info Edge a triumph for online space

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Markets make remarkable recovery: IT stocks surge Have bulls regained charge of the market? Info Edge makes debut with 50% premium Info Edge, Zenith Birla to list on Nov 21 ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Info Edge BSE | NSE 25/05/12 Are Mutual Funds betting on Info Edge?

The markets have come back with a bang! Part of this morning's excitement could well be attributed to the listing of Info Edge India , better known for naukri.com. Apart from naukri.com, Info Edge also operates Jeevansathi.com, quadrangle and 99acres.com. What does the future hold for India's first integrated internet company?

 

If you have subscribed to the Info Edge IPO, it looks like you just got lucky! Investor confidence in dotcoms seems to be restored again as Info Edge has seen its IPO attract bids of Rs 9,200 crore for an issue of Rs 174 crore.

 

Experts and analysts share their views on why this IPO has been oversubscribed across the board.

 

While the institutional and non-institutional portions were subscribed 84 times and 68 times respectively, the retail portion was subscribed 12 times.

Bankers to the issue say that Info Edge's valuations were pitched along international lines.

 

The management of the company has stated that the growth rate of the company has been 100% over the past three years. However, going forward, they expect that growth rate to ease off a bit.

 

The management also says that they will be launching new products and services shortly.     

 

Investment advisor PN Vijay says that the company has a very good business model. "They have several franchises, which have strong brand names and are well known in the market."

 

He advises to hold the stock even after having such a strong listing. "There is no need to sell Info Edge in a panic or in a spirit of greed. I will hold on to Info Edge even after this strong listing," he adds.

 

Vijay refers to Info Edge as one of the most interesting new wave stories in the Indian stock market.

 

As he gets the feeling that a lot of people who have invested in this stock, would sell out, he advises potential investors to wait for a 4-5% dip to get in again.

 

"You may see the stock falling about 4-5% once the euphoria is over. That maybe a good time to time a re-entry," says Vijay. 

 

Agreeing with Vijay's sentiment, Mehraboon Irani of Darashaw and Company says that Info Edge is indeed one of the better issues in the market currently.

 

"Till the time the stock settles down, I would not advise investors to be in a hurry to book profits in this scrip. But around Rs 500-520, investors could end up with good returns. So if an investor gets it around these levels, he can look into this scrip. But for people who have already been allotted- don't be in a hurry to book profits right now" he advises.

 

By Crystal Barretto