Just Dial surges almost 20% on Google acquisition buzz

Just Dial

Just Dial

Shares of Just Dial zoomed 20 per cent on the National Stock Exchange after reports of talks of an acquisition by internet giant Google.

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

"It may take some more time before the discussions are finalised", the banker has been quoted as saying in the report.

After having jumped to Rs 549.85, 19.79% higher than the previous session's closing, Just Dial's shares pared most of the intra-day gains to trade 7.56% higher at Rs 493.65 (1.50 pm on BSE) after the company denied that Google is set to acquire Just Dial.

The NSE sought clarification from Just Dial on the media report. According to the report, sources with knowledge of the deal told Business Standard that the two companies have entered into exclusive talks about two months ago.

Interestingly, in a post-earnings call on 31 October, an analyst had asked Just Dial about market speculations regarding its takeover by Google.

Just Dial was founded in 1996 by VSS Mani in Mumbai and provides search services through its app, website and mobile.

However, in a quick clarification, Just Dial responded, "We would like to clarify that as of now there is no proposal in respect of acquisition of business of Just Dial by Google".

Just Dial's core listing business has been facing tough competition from companies like Zomato and Practo in the recent times.

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.

The company had reported a net profit of Rs 29.6 crore in the corresponding quarter a year ago, Just Dial had said in a BSE filing.

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