Reliance Retail Ventures Ltd's (RRVL) open offer for the shareholders of Just Dial to buy an additional 26 percent stake in the company at a price of Rs 1,022 will close on October 6.

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The Just Dial stock price has actually not performed very well because of the open offer. Since July 28, the stock has not gone above that open offer price of Rs 1,022. The stock has been hovering around the Rs 1,000 mark. Because of the overhang of the open offer and the fact that there was a ready buyer coming in at Rs 1,022, the stock has been underperformed.

In July, RRVL had announced the acquisition of a 40.95 percent stake in Just Dial for Rs 3,497 crore and said it will make a public announcement for an open offer for acquiring up to 2.17 crore equity shares of Just Dial (representing 26 percent share in the company).

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"The acquirer (RRVL) is making this open offer to acquire from the public shareholders up to 2,17,36,894 equity shares, constituting 26 per cent of the emerging voting capital (offer size) at an offer price of Rs 1,022.25 per offer share (offer price)...," a public notice said. It said that this would aggregate to a total consideration of over Rs 2,222 crore (assuming full acceptance).

The agreement between RRVL, Just Dial Ltd, and VSS Mani and others, entails preferential allotment of 2.12 crore equity shares (equivalent to 25.33 percent post preferential share capital) at Rs 1,022.25 per share, and acquisition of 1.31 crore equity shares by RRVL from VSS Mani (15.62 percent post preferential share capital) at Rs 1,020 per share.

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