Just Dial Ltd said on Tuesday the company’s shareholders as of December 4 will only be eligible to take part in a planned share buyback scheme.
The Mumbai-based company, which runs an India-specific local business listing platform Justdial.com, plans to spend about Rs 170 crore ($26 million) to buy back shares at Rs 1,550 apiece.
Shares of the company were trading 2.7 per cent higher in afternoon trade at Rs 925 on the Bombay Stock Exchange on Tuesday. The shares have jumped 25 per cent since touching a one-year low on November 9 but are still down 40 per cent from the one-year high in late January.
The company had in June announced its plan to buy back up to 25 per cent of the aggregate of paid-up capital and free reserves of the firm to better use its cash pile. It has cash and cash equivalent of about Rs 800 crore.
Founded by VSS Mani in 1994, Just Dial is a local search firm that provides both B2C and B2B listings of small and medium businesses across the country, and provides services across multiple platforms, including the internet, phone, wireless and print.
Lately, it has been expanding its business by adding transaction services for its merchants allowing consumers to buy products and services from third-party vendors like a marketplace. With the most recent addition of products, it has become the first significant listed firm involved in product e-commerce marketplace.
It would now also compete with players such as Flipkart, Amazon, Snapdeal, ShopClues and Paytm.
For the year ended March 31, 2015, the company reported a 15 per cent increase in net profit at Rs 138.84 crore. Operating revenue rose 28 per cent to Rs 589.80 crore.
It counts Sequoia Capital and SAIF Partners as investors. These firms had come in as investors before the company went public in 2013. They have sold some of their shares since last September, making stellar gains.