News Update

Reliance Retail Buys Just Dial For Rs 5,710 Crore

• ByAyushi Ray     |    July 17, 2021

Reliance Retail buys Just Dial for Rs 5,710 crore, and with its India’s largest and most profitable enterprise enters into the local search service space. The company is acquiring a local search engine, which boasts more than 30 million listings of enterprises across web, app and voice platforms. The acquisition comes under one of Reliance’s significant M&As, minimizing it’s purchase of online pharmacy retailer Netmeds and British toy maker Hamleys for over Rs 620 core each. Under the contours of the deal, Reliance is acquiring 40.95 % share of Just dial by subscribing to preferential shares and buying shares from its main promoter VSS Mani and family for Rs 3497 crore. Further it will make an open offer to acquire a more 26% in its share whose retail value is Rs 2222 crore.

Reliance will make this open offer of acquiring more shares to Just Dial’s non promoter shareholders at about Rs1,022 a piece. On Friday, the stock closed at Rs 1070 on the BSE, down 3%. If Reliance gets the entire 26% through the open offer, it’s atake in Just Dial will go up to 66.95%. The transaction will see the local search engines maintained as a separate entity as founder Mani continues to be the CEO of the company to “lease Just Dial through the next phase of growth”. The Nista Dial after their full house meeting on Friday, approved Mani’s re appointment as CEO for another 5 years. 

Follow Startup Story