The Rs 950 crore IPO of Justdial opened for subscription today, with a price band of Rs 470-543 a share. Mumbai-based company, which provides search services over phone and web, will raise anywhere between Rs 822-950 crore depending on the final issue price. The issue will close on May 22, 2013.
The company has raised over Rs 208 crore through issue of 39.37 lakh equity shares to anchor investors including Goldman Sachs and HSBC.Here are few experts views of on the issue -S Naren CIO - Equities and Fixed Income, ICICI Prudential AMC"IPOs or the paper which is coming is of good quality it is pretty healthy for the market. Through the last two years we have seen primarily decent quality paper coming into the market and they have all been helpful. It will reduce absolute return in indices but as long as money is invested in good quality stocks all these divestments and many of the offer for sale (OFSs) are all pretty attractive actually for investment."SP Tulsian, sptulsian.com"I am not convinced with this IPO because - I am referring to FY12 to nine months of FY13 - they have contraction in the EBITDA margin by about 200 bps, even the profit after tax (PAT) margins have fallen by about 220 bps. If you have the expected earnings per share (EPS) of close to Rs 10 for FY13, I do not think that you justify a P/E multiple of Rs 50-55. The working has been – the people have been talking of safety net but safety net in my view is just theoretical because between 120th to 180th day, if it triggers on a volume weighted average basis, what an investor will do if he gets a share and if it rules at a discount maybe for first 120 days he has to remain and look for the safety net but apart from that even if you overlook the safety net aspect, I am not convinced because generally this innovative concepts have not worked in the Indian space. You may have the new competition, even if I take the global comparison with the Google kind of thing, they are ruling at a P/E multiple of less than Rs 30."Also Read: Why Just Dial IPO is a complete 'Avoid' for ABMoneyDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
