Just Dial share price was off day’s high in afternoon after its clarification. “Both the companies entered into exclusive talks about two months”, states the report. But JustDial stock manages to close at 9 % or 41.30 points higher (than previous day) on BSE (Bombay Stock Exchange).
Shares of Just Dial advanced almost 20 per cent in early trade on Friday after reports that the internet giant Google is in talks with the local search engine provider to acquire its business. The testimony cites an investment banker said to be proverbial for some time.”Google has been talking to Just Dial for an acquisition for some time”. “It may take some more time before the discussions are finalised”.
The company had 10,892 employees at the end of September 2017 quarter reported a net profit of Rs 37.5 crore and revenue of Rs 194.4 crore.
However, net profit declined by 1.8% overall in comparison to $5.8 Mn (INR 38.2 Cr) in the last fiscal year.
Justdial was founded by VSS Mani in 1994.
Google has expanded its services in India by including business listings on Google Map and launch of Google Tez mobile payment app. The firm started offering local searches in 1996 and is now the leading local search engine in India, with services offered on a variety of platforms – Internet, mobile, voice calls and SMSes. With the investment, Nalanda’s total stake in the hyperlocal search company increased by 2% to 7.58%. Tiger Global, EGCS and SAP Ventures have also invested in the company.
At its peak, the share price of the local search engine reached $9.5 (INR 619) in March previous year, before slumping to $5 (INR 319) in December. The company has told the bourses that there is no proposal for acquisition. So, Areo and JustDial are competitors.