Just Dial spikes 14 per cent on Just Dial Global demerger

Local search engine company Just Dial informed the exchanges late evening on January 4, 2016, that the company had called a court convened meeting of all the shareholders to consider and approve the demerger and transfer of the data and information division of Just Dial Global to Just Dial, on a going concern basis.

The board earlier had approved the draft arrangement on Just Dial and Just Dial Global demerger data and information division. If the proposed demerger goes as planned, it will help Just Dial to use the operational, financial and management bandwidth of the demerged entity, thereby deriving both operation and financial synergies.

Reacting to this piece of news, the Just Dial scrip saw a huge spike with good amount of volumes being traded on the bourses. Just Dial has been down and out over the past one year and had hugely eroded investors' wealth as the stock declined more than 60 per cent in a year.

Performance-wise too, the company has witnessed lacklustre growth in all its segments in the past quarters.

The company's scrip trades at Rs 384.25, up 12 per cent on the previous close on the NSE.