Reliance Retail acquires Just Dial Ltd

Reliance Retail Ventures Limited (RRVL), has now taken sole control of Just Dial Limited in accordance with the SEBI Takeover Regulations with effect from September 1, 2021.

The acquisition comes after Reliance wanted to aggressively dominate the Indian retail space. Just Dial has 30.4 million listings and 129.1 million quarterly users across web, mobile, app and voice platforms as of 31st March 2021. These users will be used by Reliance to further its cause.

Mumbai-based Just Dial was founded in 1996 by VSS Mani. Over the years it has become one of India's leading local search engine platform which provides search related services to users across India through multiple platforms such as website, apps, over the telephone and text.

The company has recently launched its Business-to-Business (B2B) marketplace platform called JD Mart. It is aimed at enabling millions of India’s manufacturers, distributors, wholesalers, and retailers to become internet ready in the post-COVID era.

This offers digital product catalogues to businesses and aims at digitizing India’s businesses, with an added focus on Micro, Small and Medium Enterprises (MSMEs).

Just Dial’s user base and its marketplace JD Mart will propel Reliance’s ambition in the retail space.

RRVL has been listed among the fastest growing retailers in the world in the Deloitte's Global Powers of Retailing 2021 index. It is ranked 53rd in the list of Top Global Retailers and is the only Indian retailer to feature in the Top 100.

What seems like a normal acquisition now looks like the perfect storm. Reliance is slowly clearing out its competition to become the only player in the Indian retail space.

On July 20, 2021, RRVL acquired 1.31 crore equity shares of Rs.10 each of Just Dial at a price of Rs.1,020 per equity share from Mr. VSS Mani on the floor of the stock exchange through the block window facility. The acquisition represents 15.63% of the post-preferential issue paid-up equity share capital of Just Dial, Reliance said in a statement.

On September 1, 2021, Just Dial, pursuant to the preferential issue, allotted 2.12 crore equity shares of Rs. 10/- each at a price of Rs. 1022.25/- per equity share (including a premium of Rs. 1012.25/- per equity share) representing 25.35% of the post-preferential issue paid-up share capital of Just Dial to RRVL, it added.

V.S.S. Mani will continue to lead the B2B search engine as its Managing Director and Chief Executive Officer.