Just Dial’s stock closed at Rs 500.30 – 9% higher than the previous session’s closing on the Bombay Stock Exchange (BSE).
Following reports suggesting that Google is in talks to acquire hyper-local search engine Just Dial, the latter’s stock rose up to Rs 549.85 – 19.79% higher than its previous session’s closing – on early Friday morning. However, the company’s stock closed 9% higher at Rs 500.30 on the Bombay Stock Exchange (BSE).
Over the steep rise in the stock value, the National Stock Exchange (NSE), earlier in the day, sought a clarification from Just Dial on the reports of takeover talks with Google.
“With respect to recent news item captioned ‘Google, Just Dial in deal talks’. In this regard, Exchange has advised the Company to provide clarification/confirmation on the news item in detail,” said NSE.
NSE further asked for an explanation on “Whether such negotiations were taking place and b) whether you/company are aware of any information that has not been announced to the Exchanges which could explain the aforesaid movement in the trading.”
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. Further, when there is any development to disclose, Just Dial shall do so at appropriate time as per Regulation 30 of the Securities and Exchange Board of lndia (Listing Obligations and Disclosure Requirements) Regulations, 2015.”
Following the company’s detailed explanation – denying claims that Google proposed to acquire it – Just Dial’s gains reduced – trading at Rs 492.25 at 12:11, against the days highest Rs 549.85.
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.
Earlier, a report of Business Standard suggested that internet giant Google might take-over Mumbai-based search engine. 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.