Mumbai, June 5: Local search engine Justdial today gained as much as Rs 75, or 14.15 per cent, on debut trading. The scrip finished at Rs 605 today on the NSE against its offer price of Rs 530.

More than one crore shares of the company changed hands on the NSE.

According to market analysts, investors took note of its asset-light business model, though valuations appear expensive.

They believe the success of Justdial’s initial public offering (IPO) and the stellar listing will prompt others to tap the primary markets.

Brokerage Motilal Oswal, which has a buy rating on the scrip, pointed out that the premium valuation was not only because of the company’s monopoly in the voice search segment and healthy return ratios but also because of Justdial’s strong brand and updated and accurate data base, which were key entry barriers.

Moreover, a substantial part of its revenue is from repeat advertisers. The company had recently raised Rs 950 crore through its IPO.

Justdial’s issue, the largest offer in 2013, was subscribed almost 12 times. The IPO drew a strong response from foreign institutional investors, high net worth individuals and retail investors.

Founded by V.S.S. Mani, Justdial had raised Rs 208 crore from shares to anchor investors, including Goldman Sachs and HSBC.

Market circles said one of the reasons behind the strong interest shown by retail investors, was the provision of a safety net.

Under safety net, if the market value of the scrip falls below the issue price at any time during the scheme period, the promoters will buy back shares at the sale price from the original allottees.