Mukesh Ambani-led Reliance Industries is in advanced stage discussions to buy Justdial for $800-900 million. Once complete, the deal will help Reliance Retail access the 25-year-old listings company’s merchant database as well as its pan-India network, which will be an impetus to the retail giant's digital play.
A formal announcement is expected as early as Friday. The listings company has called for a board meeting on the day, reports The Economic Times. The development comes amid earlier reports that Justdial was in talks with Tata Sons for an investment opportunity in Tata Digital’s super app.
Justdial is the market leader in the local search engine segment with 150 million average quarterly unique visitors. The company operates across platforms like mobile, apps, websites, and a telephone hotline with the number 8888888888.
Justdial Managing Director VSS Mani and family control 35.5 per cent of the company that is currently valued at Rs 2,387.9 crore.
The Reliance plan is to buy partially from Mani and put up an open offer for an additional 26 per cent of the company’s equity. At current share prices, it could lead to a payout of Rs 4,102 crore. According to the daily, if the open offer is fully subscribed to then Reliance will own over 60 per cent stake, and Mani will serve as a junior partner.