PremiumMUMBAI: Shareholders of Just Dial Ltd on Friday approved plans to issue shares worth ₹2,165 crore through a preferential allotment to Reliance Retail Ventures Ltd (RRVL), according to a stock exchange filing on Saturday.
The resolution was passed with 97.49% voted in favour of the resolution at the company’s extraordinary general meeting (EGM) on Friday.
The deal, announced last month, will see RRVL acquire a 66.95% stake in Just Dial Ltd for ₹3,497 crore, giving the retail arm of India’s most valuable company access to a database of millions of merchants and other users.
According to the agreement, Just Dial will allot 21.2 million preferential shares (equivalent to 25.33% post preferential share capital) at ₹1,022.25 per share to RRVL.
The RIL subsidiary will also acquire 13.1 million equity shares from Just Dial’s founder Mani (equivalent to 15.62% post preferential share capital) at a price per share of ₹1,020. This would give a controlling stake of 40.95% to RRVL in Just Dial.
RRVL has also made an announcement to the public shareholders of Just Dial to acquire up to 21.7 million shares of Just Dial, representing 26% in accordance with takeover regulations, taking the total shareholding to 66.95%, if RRVL acquires the entire 26% stake through the open offer.
Reliance Retail will be classified as a promoter of Just Dial post this deal, it said on Friday.
Just Dial founder V.S.S. Mani will continue to lead the business-to-business (B2B) search engine as its managing director and chief executive officer.
The transaction will help RRVL leverage Just Dial’s existing database of 30.4 million listings and its existing consumer traffic of 129.1 million quarterly unique users (as of 31 March).
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