Updated: Info Edge listed today. The stock opened at Rs 451, and hit a high of Rs 623 levels and closed at Rs 594 on National Stock Exchange. At this price, Info Edge’s market cap is over Rs 1,500 crore. And that values the founder Sanjeev Bikhchandani’s 43.23 per cent stake in Info Edge at about Rs 700 crore.
It, however, remains to be seen if Naukri can hold on to its gains.
CNBC TV18 has an interview with Mahesh Murthy of Seed Fund and Sandeep Singhal of Sequoia Capital on the Info Edge listing. According to Murthy, Info Edge should be valued at 10 times of sales or 30 times its earnings (Naukri had revenues of Rs 84 crore in 2005-06 and is expected to close 06-07 with Rs 110-120 crore). “By and large, 10 times the sales is a fair valuation for dotcom companies. However, PE multiple beyond 25 for dotcom companies is a cause for concern,” Murthy said.
In my opinion, public market valuations are decided a lot by the sentiments. So earnings multiples can take a back seat as far as valuations are concerned.
(Our earlier post) India’s first pure play internet stock – InfoEdge Ltd – will be listing on Tuesday as its founder Sanjeev Bikhchandani rings the opening bell at the Bombay Stock Exchange (BSE). The listing price (the share allocation price) is Rs 320, which is the higher end of the band (Rs 290-320). The shares will be traded on both BSE and National Stock Exchange.
The IPO of the owners of portals like Naukri.com, Jeevansathi.com and 99acres.com was oversubscribed 55 times. With the listing, the company has raised Rs 174 crore.
The issue constituted 19.50 per cent of the fully-diluted post issue paid-up capital of the company. The market cap at Rs 320 a share will be about Rs 900 crore. ICICI Securities and Citigroup Global Markets India were the lead managers for the issue, while Intime Spectrum Registry was the registrar.
–Naukri IPO Oversubscribed 55 Times