Just Dial (JDL), the developer of a comprehensive local search engine, witnessed a sharp rise in share price on Wednesday after the company clarified that the proposal to seek shareholders' nod to raise funds amounting up to Rs 10 billion was only an enabling resolution and it did not intend to hoard cash.
The company said, "Last year, we had completed our lPO, which was a 100% offer for sale and no fresh issue of equity shares was undertaken by us. Accordingly, we had not raised any funds in the company through the lPO. Further, our business has continued to generate cash and our cash balance has grown since the IPO to approximately Rs 7.40 billion (including investments) as of Sep. 30, 2014."
The firm said that as of now, it have not indentified any such suitable opportunity that would require us to raise capital and "we do not intend to hoard cash."
"We intend to act upon this enabling resolution only if we identify a suitable opportunity for pursuing strategic initiatives that requires us to expend capital over and above the funds currently available with us," the company said.
