Reliance Retail, the retail arm of Mukesh Ambani’s Reliance Industries Limited, has purchased a 40.95 percent interest in top internet technology B2B firm Just Dial for Rs 3,497 crore. According to the formal agreements signed on July 16, the retail firm would make an open offer to purchase up to 26% of the company in compliance with market regulator SEBI’s takeover laws.
This implies that Reliance Retail may purchase a 66.95 percent interest in Just Dial. VSS Mani, the company’s founder, will remain as managing director and chief executive officer following the acquisition (CEO).
The Reliance Industries subsidiary obtained 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 1,022.25, out of the total 40.95 percent purchased.
VSS Mani has sold 1.31 crore equity shares to Reliance Retail, representing 15.62 percent of the company’s post-preferential share capital at a price of 1,020.00 per share.
As managing director and chief executive officer, V.S.S. Mani, the founder of Just Dial, will continue to oversee the business-to-business (B2B) search engine.
The deal would allow RRVL to take use of Just Dial’s current database of 30.4 million listings and consumer traffic of 129.1 million unique users every quarter (as of 31 March).
Reliance Retail’s investment will assist the country’s premier local search engine platform grow and expand into a full local listing and commerce platform.
Just Dial’s current database of over 30.4 million listings and consumer traffic of nearly 129.1 million unique users each quarter will be used to leverage the investments.
“Investing in Just Dial demonstrates our commitment to New Commerce by enhancing the digital environment for millions of our partner merchants, micro, small, and medium businesses,” stated Ms Isha Ambani, Director of Reliance Retail Ventures Limited (RRVL).
The deal is subject to shareholder approval, as well as other standard closing conditions and approvals. Just Dial has launched JD Mart, a B2B marketplace platform aiming at providing internet technologies to wholesalers, manufacturers, retailers, and distributors in the country in the post-COVID age.
Retail raised Rs 47,265 crore from foreign investors, making it the country’s highest fundraising in the retail industry. For the fiscal year 2020-21, the country’s largest retailer declared a net profit of Rs 5,481 crore.
Just Dial’s search engine platform offers customers across India search-related services via a variety of channels, including websites, applications, over the phone, and text messaging.
JD Mart, the company’s B2B marketplace platform, was recently established with the goal of helping millions of manufacturers, distributors, wholesalers, and retailers become internet-ready in the post-covid age, get new consumers, and sell their products online.
The platform provides companies with digital product catalogues and strives to digitalize India’s businesses, particularly micro, small, and medium enterprises (MSMEs), across all categories.
Just Dial’s development and expansion will be aided by the cash invested by RRVL, which will enable the company become a full local listing and commerce platform.
The deal is subject to shareholder approval as well as other standard closing conditions and clearances.