Shares of Just Dial recoiled from the day’s high but were still trading up after the company denied the report that Google is in talks of buying the business of Just Dial. “We would like to clarify that as of now there is no proposal in respect of the acquisition of the business of Just Dial by Google and news published in Business standard dated 10 November 2017 is factually incorrect,” Just Dial said in an exchange filing. The stock of Just Dial trimmed gains, still trading 7.5% higher at Rs 493.5 on BSE.
Just Dial shares spiked 20% on Friday on news reports that Google is in talks of buying the business of Mumbai-based service engine Just Dial. The stock of Just Dial surged as much as 19.79%, its biggest intraday percentage gain since February 2016 to the day’s high of 549.85 on BSE. The stock gained 19.99% to Rs 551.25 on NSE. Following the acquisition buzz, heavy trading volumes were observed in the shares of Just Dial. More than 1.55 crore shares of Just Dial have been traded on both BSE and NSE so far, with about 1.43 crore on NSE alone, as at 12.00 pm.
“Google has been talking to Just Dial for an acquisition for some time. Both the companies entered into exclusive talks about two months ago,” the Business Standard reported citing an unidentified investment banker. “It may take some more time before the discussions are finalised,” Business Standard report added.
Earlier when Just Dial got listed, Amitabh Bachchan as being the brand ambassador of the company was entitled to hold about 60,000 shares at a price of Rs 10 per equity share. The stock of Just Dial went on to a continuous rising streak till mid-2014 and made an all-time high around Rs 1,800. One can imagine how much money Amitabh Bachchan would make if he sold even just a part of his shareholding in Just Dial at that price at that time.
Meanwhile, the key equity indices Sensex and Nifty opened marginally lower on Friday as most of the Asian shares slipped in the early trade today on uncertainty about US tax reforms. BSE Sensex fell 15.18 points to open at 33,235.75 whereas NSE Nifty lost 4.6 points to start at 10,304.35. Investors are keenly awaiting the second-quarter earnings of biggies such as State Bank of India and Bharat Petroleum Corporation which are likely to guide the markets ahead.
Within minutes of trading, domestic markets extended the losses and dropped further. The benchmark Sensex lost as much as 113.5 points to hit the day’s low of 33,137.43 whereas the broader Nifty tripped 38.95 points to mark the day’s low of 10,270.