Just Dial’s Stocks Jump Despite A Slow Market Reaffirming IPO Viability For Internet Companies

Just Dial’s delayed debut at the Indian Stock Markets has proven to be quite a good bet for the company & the Internet Industry in general.  The stock jumped almost 20% when it was launched today. Just Dial’s stock was initially priced for Rs. 530 (US$ 9.6) per share but soon managed to surpass the figure & jump to Rs. 631.90, before settling at Rs. 614.10. The latest price for the stock is Rs. 611.45 which is 12.61% higher than the offer price.


Is this spurt good?

Considering the volatile & overall subdued nature of the market & investor sentiments, the rise can be taken into both senses. On one hand, the Tech Stock has risen respectfully. Even stocks like that of Facebook have performed poorly. While the fate of stocks depends on multiple factors, it is often the hardcore financial outlook of the company that helps the stocks maintain their altitude.

The fact that the stocks did not jump to some unrealistic levels, simply indicate the sound nature of the company. If one observes, majority of the buyers have been large institutions like Birla Sunlife Trustee Co, Goldman Sachs, HSBC & others. This despite the fact that the company merely put out 25% of its total equity & that too was over-subscribed 11.6 times.

The IPO debut comes at a very crucial stage where Tech Companies have all but lost faith in the Public & Stock Markets. In the past multiple companies have put off their IPO launches & have opted for the Funding routes to finance their operations. The IPO was majorly orchestrated by Citigroup & Morgan Stanley.  With such reassuring success, do you think others who had been postponing their IPO launch dates would reconsider?

Source:  timesofindia

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