Reliance buys the “Indian Google” AKA JustDial, Covid Delta variant emerges, and more!

Reliance buys controlling stake in Just Dial

Further expanding the grip on the digital-retail ecosystem, Reliance Industries buys controlling stakes in the Indian retail listing giant - Just Dial.

This is one of the significant M & A of RIL, as it is acquiring 40.95% in Justdial by subscribing to preferential shares and buying shares from its main promoter V S S Mani for Rs.3497 Cr. Further, it will make an open offer to acquire an additional 26% from Justdial's Public Shareholders entailing about Rs 2222 Cr. RIL will make an open offer to Justdial Non Promoter Shareholders at about Rs 1022 per share. Currently, Justdial Share Price is 1072.70. If Reliance gets the entire 26% through the open offer, its stake in Justdial will go up to 66.95%.

VSS Mani will continue as Managing Director and Chief Executive Officer to lead Just Dial through the next phase of growth.

'The investment in Just Dial underlines our commitment to New Commerce by further boosting the digital ecosystem for millions of our partner merchants, micro, small and medium enterprises,'' said Ms. Isha Ambani, Director of Reliance Retail Ventures Limited (RRVL). 

Weekly Market Update -

Global Equity Market

The US Equity market closed at the worst weekly performance in a month where growing income reports were overshadowed by increasing delta variant cases.

Global Commodity Market - 

Owing to increasing delta variant cases and possible slowing future demand, oil experienced a dip after the long bull rally.

Companies In Focus - 

1. TikTok parent ByteDance held its IPO intentions after Chinese regulators asked it to address data-security risks.
2. Richard Branson flew to the edge of space with his company Virgin Galactic
3. Delhivery, an Indian delivery startup successfully raised $100 million from FedEx Express @$3bn valuations.
4. Intel (Nasdaq: INTC) is in talks to buy GlobalFoundries, a U.S. chipmaker owned by Mudabala Investment Co., for around $30 billion, (per WSJ)

Thanks for Reading!

Shubham Agarwal (CFA L2 Candidate | Incoming MBA candidate at University of Cambridge, UK)

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