Shares of Just Dial advanced almost 20 per cent in early trade on Friday after reports that the internet giant Google is in talks with the local search engine provider to acquire its business. At 12.11, the scrip traded at Rs 492.25 (against the day's high of Rs 549), only 7.22% higher than the previous session's closing on BSE.
"It may take some more time before the discussions are finalised", he added.
The extraordinary movement in Just Dial's share price prompted the National Stock Exchange to seek an explanation from the local search engine over the news report. "Both the companies entered into exclusive talks about two months", states the report.
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". Google has teamed up with UrbanClap, Faasos, Freshmenu, Holachef and Box8 to provide services, putting it in competition with Just Dial.
Meanwhile, reports have been doing the rounds on social media that Google was likely to invest in Bangalore-based hyperlocal delivery startup Dunzo Digital Pvt. Ltd. Its revenue from operations during the quarter under review stood at Rs 194.4 crore as against Rs 180.3 crore in the year-ago period, up 7.9 per cent.
Just Dial's core listing business has been facing tough competition from companies like Zomato and Practo in the recent times. In the first quarter, the company posted Rs 38.16 crore profit after tax.
Which was India's most valuable consumer Internet venture in early 2014?.