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Three online firms JustDial, BharatMatrimony, HomeShop18 plan IPO

Three online companies, Just Dial, BharatMatrimony.com and
HomeShop18 are all set to file their Initial Public Offering (IPO) giving hope to
venture capitalists for successful exits while restoring confidence of global
investors.

“This will pave the way. Exits have to happen this year
or next. If they don’t, then getting risk capital (from global investors) may
be challenging,” said Alok Mittal, managing director at Canaan Partners, also
an investor in BharatMatrimony to Economic Times.

Initializing the process, voice and web based local search service;
Just Dial has got a nod from Security and Exchange Board of India (SEBI) for
its IPO IN April this year.  The company had
re-filed its draft red herring prospectus (DRHP) with the marker regulator in
August, 2012. It plans to raise $700 million (Rs 3,735 crore) and is expected
to be the largest public offer by an Indian internet company.

Meanwhile, BharatMatrimony expects to raise up to $125
million later this year while online retailer HomeShop18 will likely list by
2014.

“The domestic market will be quite enthusiastic about
these IPOs as a number of these companies have a very strong consumer base in
India,” said Vani Kola, managing partner at Kalaari Capital, which has
invested in travel portal Via, lingerie retailer Zivame and furniture company
Urban Ladder.

“If these companies list and continue to do well post
listing, it will be great for the sector. There haven’t been too many exits so
far, and this should boost investor confidence,” added Vengat Krishnaraj,
vice-president at investment bank Mape Advisory Group.

In 2012, a total of 113 exits were recorded by risk capital
managers only five came through IPOs.

Kalaari’s Kola believes the proposed IPOs will act as a
bridge for a number of internet companies to firm up their listing plans.

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