Just Dial, which had closed on Friday at Rs.1073.30, opened slightly higher at Rs.1085 but soon fell down to an intraday low at Rs.1016.85. It is currently trading in the red at Rs.1025 levels.
The market has reacted negatively to the news of Reliance Retail Ventures Ltd (RRVL) acquiring a 66.95% stake for Rs 3,497 crore. RRVL will hold a 40.95% stake and will make an open offer to acquire up to 26% in accordance with takeover regulations.
The market is whether this acquisition really adds any value to RRVL as it Just Dial is only a B2B directory business and with Reliance already having Google and Facebook, which have much richer databases, this decision has got a ‘thumbs down’ from the market.