Info Edge share price jumped nearly 7 per cent to Rs 2,959.20 apiece on BSE after the board approved raising of up to Rs 1,875 crore through issue of equity shares via Qualified Institutions Placement (QIP). With today’s gain, the stock has rallied 87 per cent from its March low taking the market capitalisation of the company to Rs 35,892.33 crore. Info Edge stock price is just 5 per cent away from its 52-week high of Rs 3,125 touched in February this year. “Raising of funds through issue of equity shares of the face value of Rs 10 each of the company by way of QIP to eligible qualified institutional buyers for an aggregate amount not exceeding Rs 1,875 crore…subject to the approval of the members of the company,” it said in a regulatory filing.
Research and brokerage firm Motilal Oswal has given ‘neutral’ rating to the stock in a results update report. It said that it would revisit its estimates post the earnings call. “Outlook on billing recovery would be keenly watched,” said in the latest report.
Info Edge (India) on Monday reported a consolidated net profit of Rs 119 crore for the January-March quarter of FY20, a decline of 63 per cent from a net profit of Rs 325.2 crore in the year-ago period. “We continue to evaluate the unfolding situation of the pandemic. The billings were growing around 13 per cent till mid of March in FY20 Q4 and it took a hit in the last two weeks of the quarter,” said Chintan Thakkar, CFO, Info Edge. He also added saying that work from home and business continuity plan have been operating satisfactorily.
The company will also conduct the postal ballot by way of remote e-voting facility, for obtaining approval of the members of the company by way of a special resolution. The company has fixed June 19, 2020, as the cut-off date/record date for the purpose of sending the postal ballot notice.
Info Edge shares were trading 5.6 per cent higher at Rs 2,952.60 apiece as compared to a 0.89 per cent rise in the S&P BSE Sensex.