Venture capital firm Sequoia Capital has sold out 1% stake in Mumbai-based local search platform Just Dial through an open market transaction. As per BSE filing, the investment firm had offloaded 6.36 lakh shares representing 0.94% of stake in the company on November 20.
The offloading of shares is estimated at Rs 35.55 crore. Following this transaction, Sequoia Capital’s equity holding in Just Dial comes to 3.16%.
This is the second time Sequoia had sold its stake in local search engine through open market transaction this year. In September, Sequoia sold about 36 lakh shares ( 5.17% stake) of Just Dial for a little over Rs 135 crore.
Sequoia Capital started selling the stake in JustDial in 2013 and so far offloaded shares for five times. It’s the largest institutional investor in the company. The venture capital firm invested in Just Dial in 2009.
Founded in 1996 by VSS Mani, Just Dial is one of a few digital businesses to get listed on stock exchanges. Since the launch of IPO, the company has witnessed ups and downs in the business and share both. However, gradually local search platform is bouncing-back on a growth track.
Tiger Global exited its investment in the company by selling 5.37% stake for Rs 408 crore in November 2015 through open market transactions.
During quarter 2 of the current fiscal it registered 7.9% growth in standalone operating revenues at Rs 194.4 crore. Since the launch of IPO, the company has witnessed ups and downs in the business and share both. Two years ago, its stock price peaked to Rs 1,800 per share, but has now slumped to Rs 527.
The company recorded a 37.2% dip in its net profit for the quarter ended 31 March 2017.
Earlier this month, media reports surfaced about search giant Google was in talks to acquire JustDial. However, the company vehemently denied any such possibilities.