Reliance Buys 40.95% Stake In Just Dial For Rs 3497 Crore; Becomes Majority Stake Holder!
Reliance Industries retail arm, Reliance Retail Ventures Ltd (RRVL), is acquiring a majority stake in local search company Just Dial for ?3,497 crores.
The company is acquiring the local search engine, which boasts more than 30 million listings of enterprises across the web, apps and voice platform.
The deal will help Reliance get access to Just Dial’s massive database, “further boosting the digital ecosystem for million of our partner merchants, micro, small and medium enterprises according to Reliance Retail director Isha Ambani.
Reliance Retail Buys A Majority Stake In Just Dial!
According to a statement released by Reliance Retail, the firm will own a 40.95 per cent stake as per the definitive agreements signed on July 16, and the company would make an open bid to buy up to 26 per cent following market regulator SEBI’s takeover requirements.
Just Dial announced today that its board of directors has approved a capital raise of up to Rs 2,164.8 crore through the issuing of preferential shares to RRVL.
The capital infused by RRVL will help drive the growth and expansion of Just Dial into a comprehensive local listing and commerce platform, the company said in a regulatory filing.
Out of the total 40.95% acquired by Reliance Retail, it has received a preferential allotment of 2.12 crore equity shares, which is equivalent to 25.33% post preferential share capital at a price per share of ?1,022.25.
The Reliance Industries’ subsidiary has acquired 1.31 crore equity shares from VSS Mani, which is equivalent to 15.62% post preferential share capital at a price per share of ?1,020.00.
“Reliance is excited to partner with Justdial and VSS Mani, a first-generation entrepreneur, who has created a strong business through his business acumen and perseverance. The investment in Just Dial underlines our commitment to New Commerce by further boosting the digital ecosystem for millions of our partner merchants, micro, small and medium enterprises. We look forward to working with the highly experienced management team of Just Dial as we further expand the business going forward.”-Isha Ambani, Director of RRVL
Just Dial’s Expanded Platform And Enhanced Transactions
Just Dial plans to expand its platform’s discovery capabilities and improve transactions for millions of items and services.
VSS Mani will remain as Managing Director and Chief Executive Officer of Just Dial, guiding the company through its next phase of expansion.
Just Dial’s existing database of 30.4 million listings and consumer traffic of 129.1 million quarterly unique users (as of 31 March 2021) would be leveraged by these expenditures, according to the official statement.