Just Dial rallies 20% on takeover talks by Google

Yolanda Curtis
November 11, 2017

Shares of Just Dial soared to day's high of Rs 551.25 on Friday, registering an over 20 per cent rise from its closing price of Rs 459 yesterday after a media report said the local service search provider was in talks with search giant Google for possible sale of business.

Shares of Just Dial were trading at Rs 545.90 apiece at noon, up around 19 per cent from its previous day's closing.

However, after the shares zoomed both the BSE and NSE sought clarification from Just Dial on the media report.

"It may take some more time before the discussions are finalised", the banker has been quoted as saying in the report. The company has told the bourses that there is no proposal for acquisition.

Google has expanded its services in India by including business listings on Google Map and launch of Google Tez mobile payment app.

Sources in the know of the deal told the newspaper that the companies entered into exclusive talks a couple of months ago, after having discussed it for some time.

Earlier, a report of Business Standard suggested that internet giant Google might take-over Mumbai-based search engine.

While Just Dial posted a net profit of Rs 38.16 crore after tax in the first quarter of 2018 fiscal, it posted a net profit of Rs 37.46 crore in the second quarter.

However, revenue for the past two quarters stood at Rs 194 crore (September quarter) and Rs 190 crore (April quarter). It had posted a net profit of Rs29.6 crore in the corresponding quarter a year ago.

Ravi Adusumalli, managing partner at SAIF Partners, has left the board of Just.

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