Shares of India’s local search company Just Dial surged 20% in Friday’s early trade amidst unconfirmed reports that Google is in talks to acquire the company. If the acquisition comes through, Google will gain a massive amount of data in the form of India’s local search listings. This acquisition can help Google become a dominant player in India’s local search market.
Just Dial’s stock touched day’s high of Rs.549.85 compared to yesterday’s closing price of Rs.459 in the Bombay Stock Exchange (BSE). In the National Stock Exchange (NSE), the company’s stock reached a day’s high of Rs.551.25. The spike was only temporary as the company’s stock lost a significant part of its gain and was trading at around Rs.490 by 12.30 p.m at BSE. The same trend is also witnessed in the NSE.
Business Standard, which revealed the story today morning, quoted an anonymous investment banker who is familiar with the discussion. According to him, Google has been in talks with Just Dial for quite some time. However, it might take a while before the deal gets finalized. This partnership deal, in large part, will be based on what Just Dial can add to Google’s local listings in India.
When Google started offering local services in India, it partnered with certain local search companies in India to initiate the service. In addition to that, user-generated data over the last decade has contributed to a significant growth in the local search market. Business listings in Google are currently provided through Google Maps too.
Just Dial has been in the local search market since 1996. In addition to online listings, the company also has offline services that can be accessed through phone. For the quarter ended September 30, 2017, the company reported net profit of Rs.37.5 crore, up 26.5% from the same period of last year.
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