Reliance Retail Ventures (RRVL) today announced the acquisition of a 40.95% stake in the local search engine Just Dial in a bid to gain more traction in the domestic online e-commerce market. The deal is valued at Rs. 3,497 crore on Friday.
Reliance Retail would make an open offer to acquire upto 26% under takeover regulations set by market regulator SEBI. VSS Mani, founder of JustDial, shall continue as Managing Director and Chief Executive Officer to lead Just Dial through the next phase of growth.
With the funds invested in Just Dial, the company will be able to expand its operations as a comprehensive local listing and e-commerce platform.
Isha Ambani, Director of RRVL, said the deal could help digitally infuse millions of small, medium and micro-enterprises. VSS Mani said the strategic partnership with Reliance could contribute to the achievement of their goals and business growth.
The nature of the deal is as follows: As per the agreement reached between RRVL, Just Dial, VSS Mani and others, Reliance has received a preferential allotment of 2.12 crore equity shares, which is equivalent to 25.33% post preferential share capital at a price per share of Rs 1,022.25.