Just Dial board gives nod to allotment of 2 crore shares to Reliance Retail

Just Dial announced on Thursday that its board of directors has approved the allotment of 2.12 equity shares to Reliance Retail Ventures (RRVL). 

The allocation has been done at Rs 1,022.25 per share through preferential allotment on a private placement basis for cash consideration. 

Following this, Reliance Retail holds 40.98% of the total paid-up equity share capital of the company, Just Dial said in an exchange filing. 

Also Read: Will the Justdial acquisition add value to Reliance Retail?

"Consequent to the above allotment, the issued, subscribed and paid-up share capital of the Company stands increased to INR 83,54,56,310/- comprising of 8,35,45,631 equity shares of face value of INR 10/- each," the statement added.

In August, Just Dial stakeholders gave nod to the company's plans to issue shares worth Rs 2,165 crore via a preferential allotment to Reliance Retail. 

The deal, announced in July this year, will see RRVL acquire a 66.95% stake in Just Dial Ltd. for Rs 3,497 crore. This will give Reliance Retail access to the database of millions of merchants as well as other users.

Also Read: Reliance in talks to buy Justdial for $800-900 mn

RRVL will also acquire 13.1 million equity shares from Just Dial's founder VSS Mani at Rs 1,020 per share. This will give the retail arm of Reliance Industries Ltd. (RIL) a controlling stake of 40.95% in Just Dial.

Reliance Retail had said earlier that post the deal it will be classified as a promoter of Just Dial. Meanwhile, Mani will continue to lead the homegrown search engine as its MD and CEO.