As per a stock exchange filing released on August 14 (Saturday), the shareholders of Just Dial Ltd. approved plans to issue shares worth ₹2,165 crore through a preferential allotment to Reliance Retail Ventures Ltd. (RRVL) on Friday.
On Friday, the resolution was passed after 97.49 per cent of them voted in favour of the resolution at Just Dial’s extraordinary general meeting (EGM).
According to the deal, RRVL will purchase a stake of 66.95 per cent in the company for ₹3,497 crore, providing the retail arm of the country’s most valuable access to a database of millions of merchants as well as other users.
Furthermore, the company will allow 21.2 million preferential shares, which is equivalent to 25.33 per cent post preferential share capital, at 1,022.25 per share to RIL’s retail subsidiary.
In addition, RRVL will purchase 13.1 million equity shares from the company’s founder V. S. S. Mani, which is equivalent to 15.62 per cent post preferential share capital, at ₹1,020 per share by giving a controlling stake of 40.95 per cent to RRVL in Just Dial.
As announced by RIL’s retail subsidiary to the public shareholders of Just Dial, it will acquire up to 21.7 million shares of the company, representing 26 per cent in accordance with takeover regulations, increasing the total shareholding to 66.95 per cent, only if RRVL acquires the entire stake of 26 per cent via open offer.
The company’s founder, Mani, will continue to lead the business-to-business (B2B) search engine as its MD and CEO.
