Reliance: Just Dial, is the company which provides various information just at the click of a phone. Just Dial, headquartered at Mumbai, is known for providing information about different services in India, over phone, website and mobile app.
Just Dial currently valued at 2,388 crore might be acquired by the Reliance Group Of Industries, owned by Mukesh Ambani. The acquisition might double the valuation of Just Dial and the Reliance Group might end up owning 60% of Just Dial post the deal.
On another note, there were reports that, Just Dial was also in talks with Tata Digital for a strategic alliance, but the talks were indefinite.
Just Dial was founded in the year 1996, by V.S.S. Mani, and the family holds a 35.5% hold of the company, and as of 2020, it has an employee database of 10,984 employees with 29.4 million listings and 5,36,236 active campaigns. With offices in many Indian Cities, Just Dial has a firm mark, in India.
In early February, Just Dial had also launched its B2B marketplace platform, JD Mart. It helps many of the country’s manufacturers, distributors, retailers and wholesalers to be Internet ready in the post Covid era and procure customers online.
Now, the deal with the Reliance Group might be at $ 800-900 million. The official announcement is expected to take place on July 16, 2021.
Reliance aims to make a partial buy of the company, and put up an open offer for the additional 26% of the company’s equity. If the open offer is completely subscribed, then Mani will become the junior partner of the company and Mukesh Ambani will own over 60% stake of the company.
The talks have been going on from April onwards. Shardul Amarchand Mangaldas and Co, Cyril Amarchand Mangalchand and Goldman Sachs are acting as the advisors of the deal.
If the deal goes through, Reliance will get an access to the merchant database of the 25 year old company and its network in India, which will further push the local commerce and payments play of the Reliance Group in the highly competitive market.
The news of the acquisition led to a 3% increase in the shares of Just Dial. The official announcement is greatly awaited and if it happens, it will surely be a large acquisition of two gigantic Indian companies.