One thing Reliance has emphasized in recent years is its preference for great deals. We have seen this in large-scale equity allocation by Jio Digital and Reliance Retail with funds from PE and strategic partners. Then came the well-known Future Group acquisition transaction, which is still ongoing due to legal hurdles imposed by Amazon. Reliance Industries (RIL) announced on 20th July that its retail unit Reliance Retail Ventures Limited (RRVL) will acquire a majority stake in Just Dial, India's leading local search engine platform. When the transaction is completed, Reliance Retail will own a 67.4% stake in Just Dial, and the VSS Mani developer family will reduce its stake from 35.3% to approximately 10.5%. Reliance Retail Ventures has paid Rs 3,497 to acquire a 40.95% stake in Just Dial. Based on diluted calculations, Just Dial is valued at approximately Rs 8,560, which is much higher than the current market value. The transaction takes place in 3 different steps. 1 -Priority issue of 2.12cr shares to RRVL at a price of Rs 1022.25 per share, for a total of Rs 2,167cr. This will constitute a 25.33% interest in the diluted capital after the priority issue. 2 - RRVL acquired 1.31cr shares of Just Dial from VSS Mani and his family at a price of Rs 1,020 per share, for a total of 1,336cr. This will constitute 15.62% of the diluted capital after the priority issue. 3 - Finally, RRVL will publicly purchase 2.17cr shares from minority shareholders, accounting for 26% of the diluted share capital. According to SEBI procurement regulations, this is mandatory. After the successful completion of the public offering, RRVL will hold more than 67% of Just Dial. RRVL has paid Rs 3,497cr for 40.95% of the shares. Assuming the public offer is about Rs 1,020cr, the total injection of RRVL over 67% of the controlling interest will exceed Rs 5,700cr. Reliance Retail is already the largest retailer in India, a logical integration of a company offering strong franchise rights to customers and suppliers. Currently, Just Dial's average quarterly traffic is 12.91 crore users and lists more than 3.04 crore service providers. This is a valuable database that Reliance Retail can use. For RRVL, this acquisition has further promoted the digital ecosystem of its MSME and related businesses. A major plan of RRVL is to integrate Google Cloud to integrate customers, retailers, and wholesalers into one chain without interruption. As the main digital audience, Just Dial's customers and lists will automatically adapt to the RRVL plan. Thank you.
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