Here are five things you need to know about the company
- The promoters and existing investors are selling stake and the public issue will see the company sell 25 per cent stake which will bring down the promoter group holding from 37.15 per cent to 33.13 per cent. The company is selling 1.74 crore shares which is expected to raise Rs 820-950 crore. The proposed valuation of the company stands at Rs 3300-3800 crore. Citigroup is the book manager for the IPO.
- The management says it is a sale by existing shareholders because the company does not need money. "We have enough money for our growth and the way we have valued this company is we have done two rounds of global road shows," founder and managing director VSS Mani told NDTV.
- The company has no listed peers in the country. Justdial is a 16-year-old company but the management says it is still early days as internet penetration in India is low compared to the US where it is about 80 per cent. India has an internet penetration of 11.4 per cent, which is much lower compared to other BRIC (Brazil, Russia, India, China) nations. In Brazil the internet penetration is around 46 per cent and in both Russia and China it is above 40 per cent.
- The company sees internet penetration grow to 40 per cent in India through smart phone devices in the next 5-7 years. Justdial has evolved from a voice-based local search company to a complete internet offering company, Mr Mani said. "Today our apps are more popular than our other products and 60 per cent of our traffic comes through the net," he said.
- Increasingly a large number of Justdial's users are using the mobile version of the company and downloading the app which is where the future lies and that is how the large investors have looked at this opportunity and valued the company, Mr Mani told NDTV. Justdial's revenue model is similar to Google and it depends on advertising for revenues.