Affle freezes at 5% upper circuit for 3rd straight day on stock split plan

The board approved stock split from Rs 10 to Rs 2 to facilitate larger shareholder base and aid liquidity

Shares of Affle (India) were locked in the 5 per cent upper circuit for the third straight day, at Rs 4,608.90 on the BSE in the intra-day trade on Monday, after its board approved stock split plan in the ratio of 1:5 to facilitate larger shareholder base and aid liquidity.

Affle (India) on August 26,2021 informed the stock exchanges that the board has approved stock split of company's one equity share of face value of Rs 10 each into five equity shares of face value of Rs 2 each, subject to the approval of shareholders and other approvals as may be required.

In the past one week, the stock has outperformed the market by surging 19 per cent as compared to a 1.9 per cent rise in the S&P BSE Sensex. Till 10:16 am, a combined 108,000 equity shares had changed hands and there were pending buy orders for around 87,000 shares on the NSE and BSE. The stock had hit a record high of Rs 6,287 on March 5, 2021.

Currently, Affle (India) is trading under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

Affle, a leading adtech company in India, provides end-to-end offerings to advertisers through mobile advertising using its proprietary mobile audience as a service (MAAS) platform for customers. The company has two business segments, i.e. consumer platform and enterprise platform. The consumer intelligence platform delivers consumer engagement, acquisitions, and transactions for leading brands and B2C companies through relevant mobile advertising.

Backed by technology advancements and increasing digital user base, the outlook for the digital advertising industry is highly positive. Digital advertising comprised 47.2 per cent of total ad spends globally and 49.5 per cent of the U.S. market in 2020. By 2025, digital ad spend will comprise over 53 per cent of the total ad spend globally.

"India is one of the few markets in the world where digital advertising spends are likely to grow in double digits. Indian digital ad channel is set to become the largest amongst all media channels including TV, print, radio, Out-of-Home, etc. as ad spends are expected to be increasingly redirected towards digital formats," Affle India had said in financial year 2020-21 (FY21) annual report.

A segment that is fuelling growth for digital segment is mobile advertising. It is driven by factors such as 4G penetration, cost-effective data packages, proliferation of the mobile apps, social media and rapid growth in smartphone penetration giving boost to M-commerce, the company said.