Internet technology B2B company Just Dial today said its board has approved raising up to ₹2,164.8 crores through the issuance of shares on a preferential basis to RRVL.
Mukesh Ambani’s telecom to petrochemicals conglomerate, Reliance Industries retail arm, Reliance Retail Ventures Ltd (RRVL), is acquiring a majority stake in local search company Just Dial for ₹3,497 crores.
Reliance Retail will hold a 40.95% stake in the company as per the definitive agreements on 16 July, as per a statement issued by Reliance Retail, and would make an open offer to acquire up to 26% in accordance with takeover regulations set by the market regulator SEBI.
Just Dial today said its board has approved raising up to ₹2,164.8 crores through the issuance of shares on a preferential basis 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.
Speaking on this transaction, Isha Ambani, Director of RRVL, said, “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.”
VSS Mani shall continue as Managing Director and Chief Executive Officer to lead Just Dial through the next phase of growth.
Just Dial would expand discovery on its platform and enhance transactions for millions of products and services. These investments will leverage Just Dial’s existing database of ~30.4 million listings and its existing consumer traffic of 129.1 million quarterly unique users (as of 31 March 2021), the official release added.