Infibeam Avenues, a smallcap IT company, dipped as much as 8% on September 11 due to its spin-off of a subsidiary. Infibeam turned ex-date on Wednesday as it is the record date for the demerger of subsidiary Odigma Consultancy Solutions. This means that shareholders of Infibeam will also benefit from the spin-off which is in the ratio of 1:83. The outlook for Infibeam is healthy and the latest brokerage to recommend BUY is KR Choksey for a target price of Rs 37.6, which signals a potential upside of over 28% ahead.
Infibeam Avenues Share Price:
Infibeam stock ended at Rs 29.29 apiece, down marginally after touching an intraday low of Rs 27.93 apiece on BSE. Overall, the stock fell over 8% in the trading session of September 11 before recovering losses.
YTD, the stock has gained by 33% on BSE.
Infibeam Avenues Spin-Off:
Infibeam turned ex-date on September 11, 2024, for its subsidiary, Odigma Consultancy Solutions.
As per the regulatory filing, . Upon the Scheme coming into effect and in consideration of the transfer and vesting of the Global Top Level Domain Undertaking from Infibeam Avenues Limited into Odigma Consultancy Solutions Limited, the Equity Shareholders of the Company whose name is recorded in the Register of Members and records of the depositories as a member of the Company as on the Record Date i.e. September 11, 2024, will be entitled to allotment of:-
- 1(One) Equity Share of Re. 1/- (Rupee one Only) each of Odigma Consultancy Solutions Limited credited as fully paid-up for every 89 (Eighty-Nine) Equity Shares of Re. 1/- (Rupee One Only) each held by such shareholders in Infibeam Avenues Limited. Hence, a spin-off of 1:83 shares.
BUY Infibeam Avenues Share:
KR Choksey in its latest report said, "Infibeam Avenues Ltd Q1FY25 earnings beat our projection driven by better operating performance. NTR crossed the double-digit mark in Q1FY25E. The Company intends to expand its presence in the international market. Along with this, Infibeam announced the acquisition of Rediff.com India Ltd and the formation of a new subsidiary focusing on fraud detection and prevention."
On the valuation, the brokerage added, " We retain our EV/Sales multiple of 1.8x reflecting an FY24-FY26E revenue/PAT CAGR of 27.5%/41.1%. We believe in the Company's ability to implement its expansion plans with better geographical diversification, higher TPV growth expected, and the realization of synergies from the acquired firms. Accordingly, we retain our target price of INR 37.6. We maintain a "BUY" rating on the shares of Infibeam Avenues Ltd as we believe the Company is set for significant growth, driven by recent acquisitions, international opportunities, and new offerings."
Infibeam Avenues Ltd. is one of the leading global financial technology (fintech) company offering comprehensive digital payment solutions and enterprise software platforms to businesses and governments across industry verticals. The company's payment infrastructure solution includes acquiring and issuing solutions and offering infrastructure for banks. The core Payment Gateway (PG) business provides over 200 plus payment options to the merchants allowing them to accept payments through website and mobile devices in 27 international currencies. Infibeam Avenues' enterprise software platform hosts India's largest online marketplace for government procurement.
The company processed transaction worth INR 7.0 trillion (US$ 86 billion) in FY24. Company currently has over 10 million plus clients across digital payments and enterprise software platforms. The company's vast clientele includes merchants, enterprises, corporations, governments, and financial institutions in both domestic (India) as well as international markets. Infibeam Avenues' international operations are based in the United Arab Emirates, Kingdom of Saudi Arabia, Australia, and the United States of America. We also have business presence in Oman working with three of the largest banks in the country.
Click it and Unblock the Notifications
Sign in with Google