Info Edge jumps after agreement with SoftBank for joint investment

Info Edge (India) rose 5.05% to Rs 1235 at 11:50 IST on BSE after the company said it has signed an agreement with SoftBank to jointly invest $90 million in the parent of PolicyBazaar.

The announcement was made after market hours yesterday, 25 June 2018.

Meanwhile, the S&P BSE Sensex was up 77.73 points, or 0.22% to 35,548.08.

On the BSE, 18,000 shares were traded in the counter so far compared with average daily volumes of 1,450 shares in the past two weeks. The stock had hit a high of Rs 1,288.35 and a low of Rs 1,184 so far during the day. The stock hit a record high of Rs 1,457.50 on 22 January 2018. The stock hit a 52-week low of Rs 919 on 22 August 2017.

Info Edge (India) has entered into an agreement with SVF India Holdings (Cayman) (Soft Bank), a wholly owned subsidiary of SoftBank Vision Fund L.P., of which SoftBank Group Corp. is a limited partner, whereby Soft Bank has agreed to invest an amount equivalent to about $45 million for 49.99% stake (on a fully diluted basis) in Diphda Internet Services (Diphda), a wholly owned-subsidiary of the company, for the time being.

Info Edge (India) has also agreed to invest an amount equivalent to about $45 million in Diphda for 50.01% stake (on a fully diluted basis); and to jointly invest through Diphda, an amount equivalent to about $90 million in Etechaces Marketing & Consulting (Etechaces) for 8.93% stake (on a fully diluted basis post completion of fund raise exercise with other investors).

Etechaces Marketing & Consulting is a fintech and marketing company which works extensively in the financial sector (insurance and non-insurance) and offers an online marketplace for insurance products under the name & style of www.policybazaar.com and for other financial products like loans and credit cards under the name & style of www.paisabazaar.com.

Info Edge (India) reported net loss of Rs 13.76 crore in Q4 March 2018 as against net profit of Rs 32.87 crore in Q4 March 2017. Net sales rose 15.47% to Rs 240.66 crore in Q4 March 2018 over Q4 March 2017.

Info Edge (India) is India's premier online classifieds company in recruitment, matrimony, real estate, education and related services.

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