Infibeam Avenues demerger: Shares of Infibeam Avenues Ltd fell 8 per cent in Wednesday's trade as the stock turned ex-date for spin off of its digital marketing arm Odigma Consultancy Solutions. Wednesday is also the record date for the purpose of determining eligibility of shareholders of Infibeam Avenues for the issue and allotment of equity shares of Odigma Consultancy Solutions, following the the composite scheme of arrangement among Infibeam Avenues, Odigma Consultancy Solutions and Infibeam Projects Management and their respective shareholders and creditors.
Infibeam Avenues shares fell 8.09 per cent to hit a low of Rs 27.93 on BSE, before recovering some lost ground. The stock was later trading at Rs 28.89, still down 1.73 per cent.
Upon the scheme coming into effect, the shareholders of Infibeam Avenues, whose name is recorded in the register of members and records of the depositories today will be entitled for allotment of one equity share of Re 1 each of Odigma Consultancy Solutions Limited credited as fully paid-up for every 89 shares of Re 1 each they held in Infibeam Avenues.
In case a shareholder’s shareholding in Infibeam Avenues is such that such s/he becomes entitled to a fraction of an equity share of Odigma, in that case s/he would not be issued fractional shares by Odigma.
Instead the digital marketing firm would consolidate such fractions and issue and allot the consolidated shares directly to a trustee to be nominated by the board of directors of Odigma, who would sell such shares in the market and pay to Odigma the net sale proceeds. Later, Odigma, subject to withholding tax, if any, distribute such sale proceeds to the concerned shareholders of Infibeam in proportion to their respective fractional entitlements.
"The equity shares proposed to be allotted by Odigma are proposed to be listed with the BSE Limited and the National Stock Exchange of India Limited, subject to necessary regulatory approvals, in terms of the relevant provisions of the circular(s) issued by SEBI, as amended, from time to time," Infibeam Avenues said on August 30.
KRChoksey Shares & Securities in a note last month said it believes in Infibeam Avenue's ability to implement its expansion plans with better geographical diversification, higher TPV growth expected, and the realisation of synergies from the acquired firms.
"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," it said.
Dolat Capital last month raised its earnings estimates for Infibeam Avenues by 12.5 per cent for FY25 and 5 per cent for FY26. It expects the company to benefit from growing trend of online credit card spends and tech spends by Indian banks.