Directory services and ecommerce company JustDial has bought back shares worth nearly Rs 165 crore from shareholders, the company informed the BSE. As per regulations, the company made public announcements post buyback via the Financial Express, Navshakti and Jansatta.
The transaction was carried out at the price of Rs 1,550 per share payable in cash. The company used its free reserve capital to carry out the transaction. Largest investors to sell their stock include VSS Mani offloading 24% of his 24.37% share, SAIF II Mauritius, going down from 8.87% to 0.14% share, Sequoia Capital and SCI Growth investments, both going from 7.91% to 0.12% share and Sequoia Capital investments III, reducing shares from 5.38% to 0.08%.
Other minority shareholder to sell stake include Fidelity Investment Trust, Parvest Equity India, Aranda Investments, Matthews India fund, Government Pension Fund Global and the Government of Singapore. Overall, the company bought back around 1.06 million shares for Rs 164.53 crore. It had first announced the buyback in June last year.
Fundraising put on hold: Earlier in June, JustDial put on hold its Rs 1,000 crore fund raising plan instead opted to buy back shares. The primary objective of the planned fundraise had been acquisitions with a focus on e-commerce. JustDial founder & CEO VSS Mani had at the time said that valuations of most companies were much higher than they should be and there were very few companies of substance, hence they put their fund raising plans on the back burner till the market settled down a bit.
Tiger Global stake offload: Over the past year or so, New York-based hedge fund Tiger Global has offloaded majority of its stake in JustDial. It first sold a 3.4% stake in JustDial for Rs 300 crore in March last year, followed by shedding an additional 2.1% stake for Rs 162 crore through open market transactions in May, and finally offloading a further 5.37% stake for Rs 408 crore in the same month. Tiger Global is believed to have sold a partial stake during JustDial’s 2013 IPO as well. Following this stake sale, Tiger Global now has 3.81% stake left in JustDial. Tiger Global had invested about Rs 77 crore in JustDial in 2007 and a further Rs 30 crore in 2009.