Reliance Retail Ventures buys 41% in Just Dial for Rs 3,497 crore

By: |
July 17, 2021 5:30 AM

As per the agreement signed on Friday, Just Dial founder VSS Mani will continue to be the managing director and CEO of the company.

Of the 40.95% acquired by Reliance Retail, the company has received a preferential allotment of 2.12 crore equity shares, which is equivalent to 25.33% post preferential share capital at price per share of Rs 1,022.25.Of the 40.95% acquired by Reliance Retail, the company has received a preferential allotment of 2.12 crore equity shares, which is equivalent to 25.33% post preferential share capital at price per share of Rs 1,022.25.

Reliance Retail Ventures (RRVL), the retail arm of Reliance Industries (RIL), on Friday said that it will acquire a majority stake of 66.95% in search engine platform, Just Dial.

According to a joint statement by the companies, Reliance Retail has signed agreement to acquire 40.95% in Just Dial for a consideration of Rs 3,497 crore and would subsequently make an open offer to acquire additional 2.17 crore equity shares of Just Dial representing 26% in accordance with the takeover regulations.
As per the agreement signed on Friday, Just Dial founder VSS Mani will continue to be the managing director and CEO of the company.

Of the 40.95% acquired by Reliance Retail, the company has received a preferential allotment of 2.12 crore equity shares, which is equivalent to 25.33% post preferential share capital at price per share of Rs 1,022.25.

Reliance Retail has also 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 Rs 1,020.00. “The capital infused by RRVL will help drive the growth and expansion of Just Dial into a comprehensive local listing and commerce platform. Just Dial would expand discovery on its platform and enhance transactions for millions of products and services,” the statement said.

These investments will leverage Just Dial’s existing database of an estimated 30.4 million listings and its existing consumer traffic of around 129.1 million quarterly unique users as on March 31, 2021, the statement added.

Edelweiss in its report prior to the announcement of the deal had noted, “We believe RIL could be looking to leverage JD’s capabilities — JD Omni product for digitalisation of merchant inventory, strong feet on street, its payment platform — for its JioMart venture. The JD app has multiple services that could strengthen the technological backbone for RIL’s super-app aspirations. However, since the acquisition is likely on RIL’s books, and not on Jio Platforms’, we reckon retail business synergies might be the key reason for the deal.”

RRVL director, Isha Ambani said, “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.”

On his part, VSS Mani, founder and CEO, at Just Dial, said “Our strategic partnership with Reliance enables us to realise our vision and transform the business going forward.”

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