Info Edge rises 6% as board approves raising up to Rs 1,875 cr via QIP

The company will conduct a postal ballot by way of remote e-voting facility to obtain members' approval for the QIP

Shares of Info Edge (India) rose 6.8 per cent to Rs 2,959.20 on the BSE on Tuesday after its board approved raising up to Rs 1,875 crore through issue of equity shares via Qualified Institutions Placement (QIP).

"(The Board approved) raising of funds 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...subject to the approval of the members of the company," the company said in an exchange filing.

The company will conduct a 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 by way of e-mails to all the members of the company, the filing said.

Info Edge also announced its results for the January-March 2020 quarter yesterday in which its consolidated income from operations increased 7.8 per cent to Rs 327.5 crore.

However, the company posted an over 63 per cent decline in consolidated net profit at Rs 119 crore for the quarter. In comparison, it had registered a net profit of Rs 325.2 crore in the year-ago period.

Commenting on the results, the company's CFO Chintan Thakkar said, "We continue to evaluate the unfolding situation of pandemic. The billings were growing around 13 per cent till mid of March in FY'20 Q4 and it took a hit in the last two weeks of the quarter."

"The work from home and business continuity plan are operating satisfactorily," he said.

Info Edge recorded billing of Rs 331.9 crore during March 2020 quarter as compared with Rs 360.9 crore in the year-ago period. For the year, billing was up 7.8 per cent to Rs 1,268.7 crore, the filing said.

At 10:30 AM, the stock was up 5.77 per cent as compared to 0.5 per cent gain in the S&P BSE Sensex. A combined total of 4.6 lakh shares have changed hands on the NSE and BSE so far.