Just Dial’s leading institutional investor, SAIF Partners, will stay invested in the company even as the search engine’s R360-crore public issue ? the biggest by an Indian company in the consumer internet business ? hits the market this June. This is in line with the private equity fund’s strategy of not exiting its investments even as the invested company goes public. SAIF Partners still holds almost 33% shares of its flagship investment in MakeMyTrip that had a dream debut at Nasdaq in mid-2010.

SAIF Partners is one of the leading institutional investors in the company. As per Just Dial’s Draft Red Herring Prospectus filing, SAIF Partners holds a 9.32% pre-issue, prior to conversion of the preference shares stake.

Its pre-issue, after conversion of preference shares stake in the company is 21.58%. SAIF made its first round of investment in the local search firm for R50 crore in 2006. Tiger Global Management and Sequoia Capital India are the other significant institutional investors in the company, besides Just Dial?s promoter VSS Mani.

Ravi C Adusumalli, managing partner and head of the India operations, SAIF Partners, confirmed: ?We will stay invested in Just Dial. If we find a great business and a great management team, we hold on to the investment. The rationale behind staying invested is simple. All these companies have a long way to go in terms of growth and most of them are early in their life cycles.”

However, he added there will be some dilution of the stake, which is mandatory at the time of the listing. SAIF’s other portfolio companies, HomeShop18.com and One97, are also looking at a public listing in the coming 12-18 months. While HomeShop18.com will be aiming for a US listing, One97 will be domestic, spelled Adusumalli.

The India-focussed local business listings site, catering to both B2B and B2C listings of small and medium business advertisers, is eying a valuation of around R3,500 crore. As per Crisil Research, Just Dial has grown its revenues at a four-year CAGR of 39% to R1,899 million in FY11 and improved its PAT margin to 15.1% in FY11 from 3.3% in FY07. Its RoE improved to 36.6% in FY11 from 14.6% in FY07.