India's JustDial IPO boosts founder's net worth to $235M
Summary: The local classifieds site's founder V.S.S. Mani has become one of India's richest Internet entrepreneurs after his company's stock closed 22 percent above its issue price in the first week of trading.
The recent stock listing of online classifieds JustDial has increased the net worth of founder, V.S.S. Mani, to about US$235 million.
According to a report in TechCircle, JustDial reached a market capitalization of US$875.4 million (47 billion rupees) after its initial public offering last week. The company, founded in 1997, provides comprehensive listings of local small businesses across India, which can be accessed via a single telephone number (8888888888) or via the Web site.
The stock price's 11.8 percent rise on Friday to US$12.53 per share (676.8 rupees) also lifted the value of the 29.08 percent stake that Mani and his wife hold in the company, the report said. At the end of last week, his stake was worth US$240.9 million (13.7 billion rupees).
As of Tuesday, the share prices have dipped slightly to around US$11.20 (660 rupees), putting it at around US$235 million.
The higher prices also enhanced potential returns for JustDial's venture capital investors, the report said, who still collectively own over 40 percent of the company.
Last year, just after the company postponed its IPO attempt, Sequoia Capital India bought a US$56 million stake (3 billion rupees) at US$9.05 (488.6 rupees) per share. The recent stock price rise has delivered a 33 percent return on investment for Sequoia, the report said.