Shares of Just Dial on Monday tumbled over 5 percent after Reliance Retail Ventures Ltd (RRVL) said it will acquire 40.95 percent stake in the company for Rs 3,497 crore and also on reporting a loss of Rs 3.52 crore for the quarter ended June 30, 2021.
The stock dipped 5.17 percent to close at Rs 1,017.80 on the BSE. During the day, it tumbled 5.86 percent to Rs 1,010.30.
On the NSE, it went lower by 5 percent to close at Rs 1,018.15.
Reliance Retail Ventures Ltd on Friday said it will acquire 40.95 percent stake in Just Dial for Rs 3,497 crore, bolstering its digital play in the rapidly growing online commerce market in India.
Reliance's investment in Just Dial, a 25-year old information search and listing company, is part of the telecom to petrochemicals conglomerate's digital bet. Over the past many quarters, Reliance has announced a number of investments in companies like Netmeds, Urban Ladder and others.
RRVL - the retail arm of Reliance Industries Ltd - will also make a public announcement for an open offer for acquiring up to 2.17 crore equity shares of Just Dial (representing 26 percent share in the company), in accordance with Sebi Takeover Regulations, a regulatory filing said.
Just Dial founder VSS Mani will continue as Managing Director and Chief Executive Officer to lead the company through the next phase of growth, it added.
The transaction is subject to shareholder and other customary closing conditions and approvals. Just Dial also announced its financial results for the quarter ended June 30, 2021, on Friday. It reported a loss of Rs 3.52 crore in the reported quarter against a net profit of Rs 83.32 crore in the June 2020 quarter.
Its revenue from operations rose 1.83 percent to Rs 165.41 crore in the first quarter of the financial year 2021-22 from Rs 162.43 crore in the year-ago period.