Infosys shareholders approve transfer of Finacle, Edge Services

Country's second largest IT firm Infosys today said shareholders have approved the transfer of its Finacle and Edge Services businesses to its subsidiary Edgeverve Systems for a total consideration of up to Rs 3,620 crore.

The shareholders have also approved issuance of "bonus shares/stock dividend" in 1:1 ratio and to increase the company's authorised share capital, according to a regulatory filing.

Besides, a nod has been received for altering the company's "capital clause of the memorandum of association".

In April, Infosys had said it was looking to enter into a contract "to sell, lease, transfer, assign or otherwise dispose of the whole or part" of the two businesses -- Finacle and Edge Services.

Transfer of Finacle businesses would be for an estimated consideration of Rs 3,400 crore while that of Edge Services would be for about Rs 220 crore, according to postal ballot notice send by Infosys to its shareholders.

Once the shareholders' approval is in place, separation of these businesses would be effective from August 1 this year or any date decided by the company's board of directors, it had said.

EdgeVerve's products and platforms are used globally across diverse sectors including financial services, retail manufacturing, and telecom.

Infosys's authorised share capital would be increased to Rs 1,200 crore from Rs 600 crore.

Shares of the company today closed marginally higher at Rs 2,028.05 on the BSE.