After Tata, Ambani Dials 8888888888; In Talks To Buy Justdial For Over Rs 6,500 Cr
With 150 million average quarterly unique visitors, Justdial is the market leader in the local search engine segment.
Mumbai: Mukesh Ambani-led Reliance Industries (RIL) is said to be in talks to buy a majority stake in Justdial for over Rs 6500 crore, a move that would provide RIL access to the 25-year-old listings company's merchant database and enhance its presence in the local commerce and payments segment.
Justdial shares touched its 52-week high of Rs 1138 on Wednesday and closed up 2.5% at Rs 1107 on Thursday, ahead of its proposed board meeting on Friday, valuing the company at Rs 6893.6 crore on talks of acquisition by RIL.
The news follows earlier reports that Justdial talks with Tata Sons about a stake in Tata Digital's super app.
The company's board will meet on Friday to consider and evaluate proposals for raising funds, which may include a proposal from Reliance for a buyout. An announcement is likely to be made after the board meeting once the board approves the proposal.
The funds will be raised by way of issue of bonds, including debentures/non-convertible debt instruments/securities and/or any other instruments/equity shares/any other securities including through preferential issue on a private placement basis, qualified institutions placement, rights issue, or any other methods or a combination thereof including determination of issue price as may be permitted under applicable laws, Justdial said in a regulatory filing.
With 150 million average quarterly unique visitors, Justdial is the market leader in the local search engine segment. The company operates on mobile, apps, websites, and a phone hotline with the number 8888888888.
In reply to clarification sought by the exchange, Just Dial said, "We do not comment on media speculation, and as and when any proposals are considered by the Board that warrants disclosures, the Company complies with the disclosure obligations under the SEBI regulations. We have made and will continue to make necessary disclosures in compliance with our obligations under the SEBI Listing Regulations and our agreements with the Stock Exchanges."
Just Dial Promoters or the VSS Mani and family owns a 35.32% stake in the company, valued at Rs 2435 crore. RIL is likely to announce an open offer to acquire an additional 26% stake in the company, entailing a payout of over Rs 4000 crore after receiving the majority of the promoter's stake. VSS Mani and family are, however, likely to retain a minority stake in the company.
Justdial reported a profit of Rs 214.19 crore in FY21 on revenues of Rs 675.18 crore.
An e-mail query sent to RIL seeking a reply on the deal remained unanswered.
Analysts believe that Justdial will be a strategic fit for Reliance's retail arm for the vast database India's oldest information search has, and the listing company has and its pan-India network, which will be an impetus to the retail giant's digital play.
Trending News
Top Headlines
