Wednesday, January 4, 2017

Just Dial : Soundless journey towards south.

Just Dial hit the primary market in June 2013 at Rs 530 a share. The IPO carried grade 5, awarded by none other than Crisil.

That is what we wrote while analysing the IPO, in June 2013:

Just Dial IPO has been awarded grade 5 by CRISIL. Normally this grade is awarded to companies which are professionally managed, have impeccable track record and who have high business integrity & ethics.  However a closer scrutiny of the RHP of Just Dial tells a different story.   Among others, we found the following deficiencies / un-professionalism in conduct of the business:

               1. Improper keeping of records.                   

2. There were delay in a few cases in the deposit of undisputed statutory dues; and no payments were made to the Employees’ State Insurance Corporation, for which the company had been served show cause notice by ESIC.

3. The company had received FEMA violation notices.

4. There are outstanding criminal proceedings against the Company,  Managing Director and certain Directors and employees.

5.  Promoters have interests in entities which are in the same line of business as that of the Company.
One does not understand how CRISIL has awarded grade 5 for the IPO in spite of the above deficiencies / unprofessional conduct of the business.

We had advised the investors to stay away from the IPO. The stock is making a silent journey towards south. 

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