Background of the deal

Reliance Retail Ventures Limited (RRVL) is going to acquire one of India's biggest local search services space, Just Dial, in a cash
deal of Rs. 5,710 for 66.95% stake.

Just Dial, founded in 1996, is one of the most profitable players in this industry with about 30 million listings across web,
app and voice platforms

VSS Mani to continue as MD and CEO of Just Dial for another 5 years (after giving up about 15% of his stake)

VSS Mani has sold close to 1.31 crore shares to RRVL

Mani’s brother V Krishnan, however, will step down from his role as a director of the company on expiration of his term
on July31, as per a regulatory filing

Just Dial was founded by VSS Mani in 1996 with one aim to connect buyers with sellers quickly
Breakup of the Deal
66.95% stake in Just Dial would be acquired in 2 ways:

66.95% Stake

40.95%stake 26% stake

This will be acquired through: This remaining stake would by

1. Subscription of preference shares
2. Buying shares from VSS Mani and
his family members for Rs.
3,497crores.
acquired by making an open offer to
non-promoter shareholders of the
company for about Rs.2,222crores at
Rs.1,022 /share
What this deal means for Just Dial?
Experts say it seems like a packaged deal for Just Dial as it's facing the risk of increased competition with every passing day

Not only local but international players like Google has also eaten up a chunk of Just Dial's business.

Google's database is far richer than that of Just Dial and with the good and improving relations of Reliance and Google, it
will be safer for Just Dial to be on the same side as theirs
Just Dial will be flushed with cash, which if channelled properly into the growth of the business could lead to a further
bagging in of customers

Synergies for Reliance

Just Dial has a B2B business model whereas Reliance Retail has a B2C business model, so this deal would not reap any
tangible benefits for either companies. Also why would Reliance acquire Just Dial where on the other hand it can gain
access to Google's database which can be far more valuable to it
This deal will leads to use of Just Dial's database for Jio Mart. It goes without saying that Jio Mart would be looking for a
plethora of local players to partner up with it to ultimately capture the retail market. Even though Google may have a far
richer database, Just Dial has extensive local business listings which will prove to be helpful to Reliance in the future
 THANK YOU
Reference:
1. Economic Times
2. Business Standard
3. Mint