Just Dial is coming out with an initial public offering of about 1.75 crore shares of face value Rs 10 through an offer-for-sale. To be priced at between Rs 470 and Rs 543 an equity share, the offer could help the company raise anywhere between Rs 822 crore and Rs 950 crore depending on the final issue price.
Promoters and other investors will dilute 25.2 per cent of the paid-up equity capital. The issue does not involve the company issuing fresh shares, but selling by existing shareholders.
The offer will open for subscription on May 20 and close on May 22.
A discount of 10 per cent to the floor price is being offered to retail individual bidders.
According to the company, at least 75 per cent of the offer shall be allotted to qualified institutional buyers provided that the company and the selling shareholders may allocate up to 30 per cent of the QIB portion to anchor investors on a discretionary basis. The anchor investor bid period shall be one working day prior to the offer.
Five per cent of the QIB portion excluding the anchor investor portion shall be available for allocation to mutual funds. Up to 10 per cent of the offer shall be allocated to retail bidders and up to 15 per cent to non-institutional bidders.
The company’s promoters will also provide a safety net scheme for the eligible retail investors by which the sellers would agree to buy a portion of the stocks back if it underperforms.
This scheme would operate for a period of 180 days beginning from the date of listing and commencement of trading of the equity shares and would be triggered on the completion of the safety net period if the safety net trigger price is lower than the allotment price.
The equity shares are proposed to be listed on the BSE, the NSE and the MCX-SX.
The book-running lead managers to the offer are Citigroup Global Markets India Pvt Ltd and Morgan Stanley India Company Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar to the offer.
manisha.jha@thehindu.com