Just Dial’s Share Grows 4% As Reliance Industries In Talks To Buy Search Engine

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Just Dial’s share rose 4% today amid reports that Reliance Industries, led by Mukesh Ambani, is in talks to buy the search engine company from its founding promoters for $ 800 million to $ 900 million. The stock has gained 3.78% in the past 2 days. The share hit an intraday high of Rs 1,123.15, up 3.98% on BSE.

The Just Dial stock trades above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.

In total, 2.76 lakh shares changed hands for a turnover of Rs 30.47 crore on BSE.

The company’s market cap rose to Rs 6,954 crore on BSE.

Mid-cap stock hit a 52-week high of Rs 1,138 on July 14, 2021 and a 52-week low of Rs 333.05 on September 25, 2020.

Just Dial’s share has grown 76.63% since the start of this year and has gained 201.77% in one year.

Reliance in talks to buy Justdial for $ 800-900 million

Once completed, the deal will give Reliance access to the 25-year-old ad company’s merchant database.

An official announcement related to the deal is expected on July 16. The search engine called a board meeting that day, according to an article in The Economic Times.

The Mumbai-based company is the market leader in the local search engine segment with 150 million unique visitors per quarter on average. The company operates on platforms such as mobile, apps, website and a telephone hotline with the number 8888888888.

Managing Director VSS Mani and his family hold 35.5% of the company’s capital. The company is currently valued at Rs 2,387.9 crore.

RIL aims to buy part of Mani and set up an open offer for an additional 26% of the company’s capital. At the current share price this could lead to a payout of Rs 4,102 crore. According to the ET report, if the open offer is fully subscribed, then Reliance will own more than 60% of the capital and Mani will serve as a junior partner.

Reliance is also expected to inject capital into the listing company.

The two sides have been engaged in talks since April. Shardul Amarchand Mangaldas and Co, Cyril Amarchand Mangaldas and Goldman Sachs are the advisers of this operation.

Earlier, it was reported that Just Dial was in talks with Tata Sons for an investment opportunity in Tata Digital’s super app. However, these talks appear to have ended abruptly.


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