Why Just Dial shares declining ???

Why Just Dial shares on continuous decline ???

Existing :  Due to exit of Sequoia Capital and SAIF Partners. Later Tiger Global had exited Just Dial.

For Info : Bollywood superstar Amitabh Bachchan holds stake in Just Dial and Amitabh Bachchan is also the brand ambassador of Just Dial.

Temasek bets on Just Dial again.
Buying :   Nalanda Capital ups stake in Just Dial for around $18M(It is the third-largest non-promoter investor in the company)

SAIF Partners’ portfolio includes BookMyShow, BlueStar, HomeShop18.com, Havells, JustDial(exit) , TV9, NSE, Karur Vysya Bank, MindTree, MakeMyTrip.com and Edelweiss. Some of its multi-bagger exits include MakeMyTrip, which listed on NASDAQ a few years ago, and part-exit in Just Dial with about 30x in returns.

Singapore-based Private equity investment firm Nalanda Capital has invested around $18 Mn (INR 120 Cr.) in Mumbai-based local search service JustDial.

With this, Nalanda’s total stake in the company increased by 2% to 7.58% as per stock market reports.

JustDial was founded in 1994 by VSS Mani. The official website (www.justdial.com) was launched in 2007. It is a local search firm that provides both B2C and B2B listings of small and medium businesses across the country.

The other two major shareholders of JustDial are Sequoia Capital and SAIF Partners. Tiger Global, EGCS and SAP Ventures have also invested in the company.

In 2014, SAIF Partners sold 2.4% stake in JustDial which helped it earn returns of over 30 times in comparison to funds that it had invested.

In the past year local service aggregators have grown in India.DoorMint, HouseJoy, LocalOye, UrbanClap, etc are a few players in this segment.

Established in May 2007, Nalanda Capital invests in small to mid-cap companies in India for a long-term. Nalanda has investments in Berger Paints, Genpact, Havells, Mindtree among others in its portfolio.

First, the compliments must fly out to the existing promoters V.S.S. Mani, Anita Mani, Ramani Iyer, V. Krishnan and the private equity investors SAIF, Sequoia and Tiger Global for raking in the multibagger profits out of the Just Dial IPO. These investors got in early, pumped in money into an unknown venture, took the risk and are now exiting with gigantic profits.

Surprisingly, Amitabh Bachchan, whose investing talent we admire, is a substantial early investor in Just Dial with 62,794 shares. He subscribed to these shares at just Rs. 10 and at the IPO price of Rs. 543 (high price band), these shares are worth Rs. 3.41 crores, giving him huge multibagger profits. Amitabh Bachchan is also the brand ambassador of Just Dial.

Nalanda Capital, a Singapore-based PE-style investment firm that focuses on public markets, has increased its stake in Mumbai-based Just Dial Ltd, which runs the online business directory and marketplace Justdial.com.

The investment firm acquired a 2.04 per cent stake in the company for an estimated Rs 115-120 crore ($18 million) last week, taking its holding to 7.58 per cent. It had also acquired some shares last month and is now the third-largest non-promoter investor in the company.

Nalanda has built a large portfolio with investments in publicly traded companies in India. It typically tends to gradually raise its holding in its public listed portfolio and in some firms owns a stake of more than 10 per cent.

Apart from Nalanda, Just Dial also counts Sequoia Capital and SAIF Partners as investors, among others. These firms had come in as investors before the company went public in 2013. They have sold some of their shares since September 2014, making stellar gains.

Recently, Sequoia Capital reduced its exposure in the company selling a chunk of its stake in the company in its third part-exit. It earlier sold some shares as part of the offer for sale during the public issue of Just Dial in mid-2013 and then offloaded some stake in late 2014.

Last year, Tiger Global had exited Just Dial. Prior to that, SAIF Partners had also trimmed its holding in the company. Temasek is another investor in the firm.

Founded by VSS Mani in 1994, Just Dial is a local search firm that provides both B2C and B2B listings of small and medium businesses across the country, and provides services across multiple platforms, including the internet, phone, wireless and print.

Lately, it has been expanding its business by adding transaction services for its merchants and allowing consumers to buy products and services from third-party vendors like a marketplace. With the most recent addition of products, it has become the first significant listed firm involved in product e-commerce marketplace.

It would also compete with e-commerce players as well as hyperlocal startups that allow consumers to book services related to home repair etc.

For the year ended March 31, 2015, the company reported a 15 per cent increase in net profit at Rs 138.84 crore. Operating revenue rose 28 per cent to Rs 589.80 crore.

Shares of Just Dial closed at Rs 792.45 each, down 1.04 per cent in a strong Mumbai market on Monday. It has a market cap of around $820 million and is the third most-valued public Indian internet firm behind Info Edge (India) Ltd and NASDAQ-listed MakeMyTrip. However, the company's share price has halved from its highs in 2014.

Unbundling Justdial : This Is How 68+ Startups Are Disrupting JD !

Justdial, the undisputed local search leader is being disrupted and unbundled by several startups and global players.

Startups That Are Unbundling Justdial

Currently, there are more than 68+ startups* (including global players) who are disrupting Justdial – across different categories ranging from home delivery services to hotels/restaurant/utility/real estate to chemists/medical services.

What’s interesting is how Justdial’s existing investors – Sequoia, SAIF and Tiger are leading the “unbundling round”– having tasted the (local + search) blood !

[Data compiled by Sandeep Reddy, Ashish Sinha and Swathi.]

Source: www.vccircle.com;rakesh-jhunjhunwala.in; http://inc42.com; http://www.nextbigwhat.com