Just Dial jumps after clarification on fund raising

Just Dial surged 6% to Rs 1444.90 at 11:19 IST on BSE after the company issued a clarification regarding fund raising resolution passed by its board of directors.

The announcement was made before market hours today, 29 October 2014.

Meanwhile, the S&P BSE Sensex was up 167.90 points or 0.62% at 27,048.72.

On BSE, so far 97,000 shares were traded in the counter as against average daily volume of 33,359 shares in the past one quarter.

The stock hit a high of Rs 1,465.90 and a low of Rs 1,387 so far during the day. The stock had hit a record high of Rs 1,894.70 on 5 August 2014. The stock had hit a 52-week low of Rs 953.65 on 13 November 2013.

The stock had underperformed the market over the past one month till 28 October 2014, declining 14.8% compared with Sensex's 0.96% rise. The scrip had also underperformed the market in past one quarter, sliding 15.92% as against Sensex's 3.42% rise.

The large-cap company has equity capital of Rs 70.17 crore. Face value per share is Rs 10.

Just Dial's board of directors has passed an enabling capital raising resolution to ensure that the company is prepared in the event a suitable opportunity arises for it to pursue any strategic objectives. As of now, the company has not identified any such suitable opportunity that would require it to raise capital and it does not intend to hoard cash. The company said it intends to act upon this enabling resolution only if it identifies a suitable opportunity for pursuing strategic initiatives that requires it to expend capital over and above the funds currently available with it, Just Dial said in a statement.

Just Dial made the above clarification with regard to its earlier announcement dated 20 October 2014 in connection with the approval of its board of directors to raise funds up to an amount not exceeding Rs 1000 crore through issue of equity or equity-linked securties.

Just Dial's net profit rose 9.9% to Rs 31.49 crore on 30.8% growth in net sales to Rs 147.40 crore in Q2 September 2014 over Q2 September 2013.

Just Dial provides local search related services to users in India through multiple platforms such as the internet, mobile internet, over the telephone (voice) and text (SMS). The company has also initiated its 'Search Plus' services for its users.

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