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Just Dial share rises 4% as Reliance Industries in talks to buy search engine

Just Dial share rises 4% as Reliance Industries in talks to buy search engine

Just Dial stock touched an intraday high of Rs 1,123.15, rising 3.98% on BSE

Just Dial stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Just Dial stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Just Dial share rose 4% today amid reports that Mukesh Ambani-led Reliance Industries is in talks to buy the search engine firm from its founding promoters for $800-900 million. The stock has gained 3.78% in the last 2 days. The stock touched an intraday high of Rs 1,123.15, rising 3.98% on BSE.

Just Dial stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Total 2.76 lakh shares changed hands amounting to turnover of Rs  30.47 crore on BSE.

 Market cap of the firm rose to Rs 6,954 crore on BSE.

The mid cap share hit 52-week high of Rs 1,138 on July 14, 2021 and 52-week low of Rs 333.05 on September 25, 2020.

Just Dial share has risen 76.63% since the beginning of this year and gained 201.77% in one year.

Reliance in talks to buy Justdial for $800-900 mn

Once complete, the deal will allow Reliance access to the 25-year-old listings company's merchant database.

A formal announcement related to the deal is expected on July 16. The search engine has called for a board meeting on the day, according to a report in The Economic Times.

The Mumbai-based firm is the market leader in the local search engine segment with 150 million average quarterly unique visitors. The company operates across platforms like mobile, apps, website and a telephone hotline with the number 8888888888.

Managing Director VSS Mani and family hold 35.5 per cent stake in the firm. The company is currently valued at Rs 2,387.9 crore.

RIL aims to buy partially from Mani and put up an open offer for additional 26 per cent of the company's equity. At current share prices, it could lead to a payout of Rs 4,102 crore. According to the ET report, if the open offer is fully subscribed to, then Reliance will own over 60 per cent stake, and Mani will serve as a junior partner.

Reliance is also expected to infuse capital into the listings company.

Both sides have been engaged in talks since April. Shardul Amarchand Mangaldas and Co, Cyril Amarchand Mangaldas and Goldman Sachs are the advisors to this deal.

Earlier, there were reports that Just Dial was engaged in talks with Tata Sons for an investment opportunity in Tata Digital's super app. However, those talks seem to have ended abruptly.

Published on: Jul 15, 2021, 11:55 AM IST
Posted by: Aseem Thapliyal, Jul 15, 2021, 11:47 AM IST