The Reliance Retail Ventures Limited(RRVL) will be acquiring a controlling stake of 66.95% in Just Dial, according to an agreement finalised between the two firms on Friday. VSS Mani, the founder of the B2B Indian e-commerce platform, will continue to serve as the Chief Executive Officer and the Managing Director of the company. RRVL is the retail unit of the Mukesh Ambani led Reliance Industries Limited(RIL).
Reliance Retail will be holding a 40.95 per cent stake in Just Dial while the remaining 26% of shares would be acquired through an open offer as per the takeover regulations of the market regulator SEBI.
The 40.95 per cent stake includes a preferential allotment of 2.12 crore equity shares at a per-share price of Rs 1,022.25, forming about 25.33% post preferential share capital.
Meanwhile, Reliance will also take 1.31 crore equity shares from Just Dial’s founder VSS Mani, equivalent to 15.62% post preferential share capital. This would cost Reliance Retail at Rs 1,020 per share.
“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,” Isha Ambani, Director of RRVL said on Reliance’s latest acquisition.
According to the press release issued, the transaction would aid Just Dial to become a comprehensive local listing and commerce platform. “Just Dial would expand discovery on its platform and enhance transactions for millions of products and services.”
Speaking on the occasion, VSS Mani said that the ‘strategic partnership with Reliance’ would help Just Dial in realizing its vision and transforming the business.
Mumbai-based Just Dial was founded in 1996 and has evolved over the years in providing local search, B2B, e-commerce services over platforms like phone, website and mobile app.