Reliance Retail is likely to acquire a majority stake of 66 per cent in Just Dial
Reliance Retail, the retail arm of billionaire Mukesh Ambani-led Reliance Industries Limited, acquired a stake of 40.95 per cent for Rs 3,497 crore in leading internet technology B2B company Just Dial. As per the definitive agreements on July 16, the retail company will make an open offer to acquire up to 26 per cent in accordance with takeover regulations set by market regulator SEBI.
This means that Reliance Retail may acquire a majority stake of 66.95 per cent in Just Dial. With the acquisition, Just Dial Founder VSS Mani will continue to lead the company as its managing director and chief executive officer (CEO).
Out of the total 40.95 per cent acquired by the Reliance Industries’ subsidiary, it has received a preferential allotment of 2.12 crore equity shares, which is equivalent to 25.33 percent post preferential share capital at a price per share of Rs 1,022.25.
Reliance Retail has acquired 1.31 crore equity shares from VSS Mani, which is equivalent to 15.62 percent post preferential share capital at a price per share of Rs 1,020.00.
The capital infused by Reliance Retail will help drive the growth and expansion of the country’s leading local search engine platform into a comprehensive local listing and commerce platform.
The investments will leverage Just Dial’s existing database of around 30.4 million listings and its existing consumer traffic of nearly 129.1 million quarterly unique users
”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,” said Ms Isha Ambani, Director of Reliance Retail Ventures Limited (RRVL).
The transaction is subject to shareholder as well as other customary closing conditions and approvals. Just Dial recently launched its B2B marketplace platform – JD Mart which is aimed at equipping wholesalers, manufacturers, retailers, and distributors in the country with internet technology for a post-COVID-era.
Last year, Reliance Retail executed the country’s largest fundraising in the retail sector – raising Rs 47,265 crore from global investors. The country’s leading retailer reported a net profit of Rs 5,481 crore for the financial year 2020-21.