The company had reported a net profit of Rs 29.6 crore in the corresponding quarter a year ago, Just Dial had said in a BSE filing. This was reported a day after the talks of Google acquiring Just Dial. 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.
Shares of local search engine Just Dial on Friday rose 20 percent to hit Rs 549.85 after the Business Standard reported that the U.S. internet giant Google is in talks to acquire the company. The testimony cites an investment banker said to be proverbial for some time."Google has been talking to Just Dial for an acquisition for some time". The price of shares decreased. It may take some more time before the discussions are finalised, the investment banker told the financial daily.
As expected, the hyperlocal search company's share price dropped to $7.1 (INR 467.05) once JustDial's clarification was made public.
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.
Justdial was founded by Managing Director and Chief Executive Officer, VSS Mani with 6 employees, rented computers and borrowed furniture in a hired garage space. The company offers search services across multiple platforms, such as the internet, mobile internet, telephone (voice) and text (SMS).
At its peak, the share price of the local search engine reached $9.5 (INR 619) in March a year ago, before slumping to $5 (INR 319) in December. However, "we would like to clarify that as of now, there is no proposal in respect of acquisition of business of Justdial by Google", it added.