SAP Ventures, the corporate venturing unit of global software group SAP, will soon realize its investment in Mumbai-based Just Dial, an India-based local business listings site, when the company opens its initial public offering on May 20 to raise between Rs 822 crore ($150m) and Rs 950 crore ($170m).
Depending on the final price band announced on Monday, the listing of Just Dial could mark India’s largest offering by an Indian internet company.
Just Dial, which has been putting its listing on hold since it first filed for an IPO back in August 2011, is reportedly looking to sell close to 17.5 million shares at a price band of Rs 470 ($8.50) to Rs 543 ($9.90).
The issue will solely comprise secondary sale of shares. Reportedly, close to 14.7 million shares will be sold by the investors while the balance of 2.8 million will be sold by the management and the promoter group, which includes promoter VSS Mani and COO V Krishnan.
The public listing will also enable to company to accelerate its plans to be an online marketplace to buy and sell goods, such as cars, between consumers and businesses listed on Just Dial.
Since 2009, Just Dial has raised about $75m in venture capital. The online business directory’s venture backers, in addition to SAP Ventures, include SAIF Partners, Tiger Global, and Sequoia Capital. In 2011, Just Dial raised Rs 327 crore ($57m) from existing investor Sequoia Capital in one of the largest pre-IPO rounds of venture funding for the India market.
The IPO will see a dilution of 25.02 per cent stake, which will value the company between Rs 3,290 crore ($600m) and Rs 3,800 crore ($700m), depending on the final price band. Investors are looking at an estimated return of between eight and 12 times their investment.
Its consolidated total income increased from Rs 71.6 crore ($13m) in FY08 to Rs 277 crore ($51M) in FY12, representing a CAGR of 40.2 per cent. Its profits after tax increased from Rs 1.71 crore ($3m) in FY08 to Rs 52.3 crore ($9.5m) in FY12.
Citigroup Global Markets India and Morgan Stanley India are acting as the IPO book running lead managers.