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Private equity investors are capitalising on the soaring interest in Indian e-commerce to make a profitable exit. Tiger Global is the latest one to do so, exiting local search engine Just Dial for over ₹400 crore through an open market transaction.
According to a BSE filing, Tiger Global Four JD Holdings and Tiger Global Five Indian Holdings sold 37.89 lakh shares, representing 5.37 per cent of Just Dial. Tiger Global has been reducing its stake in the company over the last several months.
Big returns In 2007, Tiger Global had picked up about 20 per cent in Just Dial for about ₹77 crore. It recently sold a 2.5 per cent stake in the company for ₹192 crore. Last month, it sold around 3.4 per cent for ₹300 crore and it had given up 5.4 per cent in tranches for ₹500 crore
In the recent past a number of other investors have cashed out of start-up companies at a premium.
For example, Helion Venture Partners exited Taxi For Sure after Olacabs bought out the cab hailing service. Similarly, Blume Ventures got out of ZipDial after Twitter acquired it.
Share price declines Though Tiger Global has made nearly 20 times its original investment, the value of Just Dial shares has declined around 30 per cent on the BSE since January. Just Dial was founded in 1996 and offers listings of small and medium businesses across the country.
On Thursday, the company’s shares closed marginally higher at ₹1,145 apiece, on the BSE.
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