Info Edge shares showing up to 80% fall in some app today; here's why

Infos Edge shares split: Shares of Info Edge (India), also known as Naukri, might be showing up to a 80 per cent in some trading apps today as the internet services provider ex-split today. Shares of the company traded ex-split today  and all the eligible shares of Info Edge, as of the record date, shall see their holding being split in 1:5 ratio. This is their first stock split since listing in November 2006.

It means all the shares of Naukri, with a face value of Rs 10 each, shall be split or subdivided into five shares with face value of Rs 2 each as of today. Investors having the Info Edge in their demat account shall be eligible for this corporate action and the stock price shall also be adjusted in the same ratio, that is, 1:5. From today, subdivided or adjusted shares shall be traded on the bourses.

Shares of Info Edge (India) opened at Rs 1,390.15 on Wednesday, signalling a 81 per cent fall from its previous close at Rs 6,985.45 on Tuesday. The total market capitalization of the company stood close toRs 90,000 crore mark. The indicated fall was due to the 'subdivision' of its equity shares in 1:5 ratio.

However, the stock extended its fall to 1.30 per cent to Rs 1,379 on Wednesday, extending the overall fall over its previous close but managed a marginal rebound from day's low. However, despite the rebound, the stock might be signaling a 80 per cent fall in some apps today.

Tuesday, May 06 was the last to buy Info Edge (India) shares to become eligible for the aforesaid corporate actions as it marked the record date for it. The stock is under the 'T+1' settlement cycle. The record date determines the eligibility of shareholders for the corporate action. The move aims to increase stock liquidity and make the shares more affordable for retail investors.

In its recent letter, Info Edge (India) thanked its shareholders for their support. "We are grateful for the trust and confidence you have reposed in Info Edge. Shareholders play a crucial role in the Company’s journey, and we truly appreciate your continued support and guidance," said the company in its letter.

"We first started investing in early stage technology startups around 18 years ago in 2007. This investing activity today contributes to an estimated 30-40 per cent of the value of the Company if analyst reports are to be believed - second only to the contribution of Naukri(dot) com," it added. "If you had asked us back in 2007 whether we expected that we would come this far and create as much shareholder value as we have, we would not have anticipated it in the least."

Kotak Institutional Equities has an 'add' rating on the stock with an adjusted target price of Rs 1,660. "We expect Naukri to report 14 per cent YoY revenue growth and 99acres to report 15 per cent YoY revenue growth. Other segments (JS and Shiksha) report 15.3 per cent and 4.9 per cent YoY revenue growth, respectively," it said.

Nuvama Institutional Equities expects revenue to grow 13.6 per cent YoY, driven by strong growth in non-recruitment business. Recruitment business to report growth of 13.9 per cent YoY in Q4FY25. Ebitda margin is expected to decrease by 10 bps QoQ, it said. Nuvama has a 'buy' rating on the stock with an adjusted target price of Rs 1,820 on the stock.