Info Edge shares gain 7%, hit all-time high on launch of QIP
06/08/2020
NEW DELHI, aug 5: Shares of Info Edge advanced nearly 7 per cent to hit a record high of Rs 3,419 on the BSE on Wednesday after the company announced it has launched qualified institutional placement (QIP) to raise up to Rs 1,875 crore.
In an exchange filing, the company informed on Tuesday that the Board of Directors of the Company at its meeting, approved and authorised the opening of the QIP on August 4, 2020. The floor price of the QIP has been fixed at Rs 3,177.18 per equity share. On June 22, the company's board of directors had approved fundraising through issue of equity shares of 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. Info Edge runs online classified businesses such as Naukri.com, 99acres.com, Jeevansathi.com, and Shiksha. Analysts at Edelweiss Securities, in a report issued on June 23, had said that the QIP can be used for strategic acquisition to boost scale in some of the businesses. "With a few of its businesses struggling due to lockdown and lack of liquidity, this could be a good opportunity to acquire assets, especially in the real estate and matchmaking business to build scale," the brokerage had said. "Info Edge remains one of the best-diversified internet franchise with strong execution and capital allocation track record. However, we maintain ‘HOLD/SP’ with the target price of Rs 3,015 due to the company's high dependence on businesses that are linked to economic recovery and expensive valuations (54.3x FY22E EPS for core business)," the brokerage added. At 10:50 am, the stock was trading nearly 5.5 per cent higher at Rs 3,375 on the BSE. In comparison, the benchmark S&P BSE Sensex was trading 295 points or 0.78 per cent higher at 37,983 levels.
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