Reliance Retail acquires controlling stake in Just Dial for Rs. 3497 crores

Reliance Retail today announced that it will acquire a controlling stake in Just Dial, India’s leading local search engine platform, for a total consideration of Rs. 3,497 crores. Reliance Retail will hold 40.95% and would make an open offer to acquire up to 26% in accordance with SEBI. VSS Mani will continue as Managing Director and Chief Executive Officer to lead Just Dial through the next phase of growth.

As a part of the same Scheme:

  • a) Preferential allotment of 2.12 crore equity shares (equivalent to 25.33% post preferential share capital) at price per share of Rs 1,022.25
  • b) Acquisition of 1.31 crore equity shares by RRVL from VSS Mani (equivalent to 15.62% post preferential share capital) at a price per share of Rs 1,020.00.
  • c) Shareholders agreement governing certain inter se rights and obligations between the parties

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, said the company.

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 on 31 Mar 2021), it added.

The transaction is subject to shareholder and other customary closing conditions and approvals.

Regarding the transaction, Isha Ambani, Director of RRVL, said:

Reliance is excited to partner with Justdial and Mr. 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, Founder and CEO at Justdial, said:

Nearly 25 years ago, we had a vision to build a connected single platform dedicated to providing fast, free, reliable and comprehensive information to our users and connect buyers to sellers. Our vision has evolved to not only provide search and discovery but drive commerce across merchants through our B2B platform and enable further consumer to merchant commerce given our platform engagement. Our strategic partnership with Reliance enables us to realize this vision and transform the business going forward.

Author: Srivatsan Sridhar

Srivatsan Sridhar is a Mobile Technology Enthusiast who is passionate about Mobile phones and Mobile apps. He uses the phones he reviews as his main phone. You can follow him on Twitter and Instagram