Just Dial Limited which had tapped the capital markets with its offer for sale of 174.97 lac shares was oversubscribed 11.63 times. The price band was Rs 470-543 with a fixed discount of Rs 47 to retail investors and also a safety net. The issue had opened on Monday the 20th of May and closed on Wednesday the 22nd of May. The company had earlier allocated 39.37 lac shares to anchor investors at Rs 530.

The issue received excellent response from all sections to whom it was offered. Though the retail portion which was oversubscribed 3.51 times looks lesser than the others the fact to bear in mind is that in retail unlike other categories the allotment is based on the minimum lot to all applicants before pro-rata. This means that the 1.6 lakhapplications which have come indicate that the average application size in this category is 37-38 shares or roughly 1.5 lots. As there are only 69,98,990 lots available, the allotment ratio would be roughly 2 out of 5 applicants getting 25 shares. Secondly it appears from the way the book has been made and keeping in mind the anchor allocation price, the allotment price for the offer for sale would be Rs 530.

The details of the subscription level in various categories are given below: –

The issue has received excellent response from all categories of investors. The cost of finance for the leveraged HNI assuming 9% for eight days works out to Rs 24-25 per share. This means for the successful retail applicant there is an upside of roughly Rs 77-80 (Rs 47 discount plus Rs 30 interest cost) per share or Rs 2000 for 25 shares that would be allotted. This return would be on an

Well the issue has garnered support in the subscription stage; let us see how it fares on listing where an issue with 75% reservation for QIB’s has been oversubscribed over 1o times by QIB’s and over 11.6 times overall.