Just Dial waswidespread phone and Internet predicated local search provider in India. The company started supplying services in 1996, but the company's revenues shot up in 2004 with the penetration of telecoms in the Indian marketplace. Several private equity investors funded the increase of Just Dial. Nearly 90% of Just Dial earnings came from Tier I cities in India. So as to mark its presence and expand its network to Tier II cities, Just Dial required funds.
Just Dial’s IPO Case Solution
With funds raised from private equity investors, Just Dial intended to take the IPO route for additional fundraising. The case is positioned in May 2013, just a couple days before the launch, when there was a great deal of negative news in the market regarding Just Dial's overvaluation of the IPO. The business model was entirely new to be able to do a good valuation and there were no industry comparables.
Investors were warned by analysts in the marketplace, implying they avert the IPO as it was overvalued. Therefore, investors were skeptical of the valuation of Just Dial. With this negative awareness predominating in the market, should Just Dial consider delaying the IPO or lowering the price range (hence reconsidering its valuation)?
PUBLICATION DATE: October 08, 2015 PRODUCT #: HK1075-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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