India’s Digital Giant Declares 5-for-1 Stock Split - Will the Stock Surge?
How this corporate action aligns with long-term expansion plans
stock split Announcement
The Board of Directors of Info Edge (India) Limited has approved the sub-division of its equity shares. The existing shares with a face value of Rs. 10 will be split into five shares with a face value of Rs. 2 each. This decision is subject to shareholder approval through a Postal Ballot and necessary regulatory clearances. The record date for the stock split will be announced later.
Articles of Association Amendment
To reflect the stock split, the company will amend its Articles of Association. The new definition of equity shares will now state a par value of Rs. 2 per share. This amendment is also subject to shareholder and regulatory approvals.
Investment in Alternative Investment Fund (AIF)
The Board has also approved a commitment of up to Rs. 1,000 crore in IE Venture Investment Fund III. This fund, to be launched by Karkardooma Trust, is a Category II Alternative Investment Fund. The investment aligns with the company’s strategy to enhance long-term value creation.
Regulatory and Shareholder Approvals
Since the proposed investment qualifies as a related party transaction, it requires shareholder approval. SEBI’s approval is also pending for the fund’s registration and launch. Once approvals are received, the investment will be made in multiple drawdowns over time.
Info Edge Q3FY25 Financial Performance
The company reported strong growth in the third quarter of FY25.
- Revenue from Operations: Rs. 722.39 crore, up 15.2% YoY.
- Billings: Rs. 668 crore, up 15.8% YoY.
- Operating Profit: Rs. 263 crore, up 20.4% YoY.
- Net Profit: Rs. 288.42 crore, up 141.5% YoY.
- EPS: Rs. 20.06, up 21.2% YoY.
Segment-Wise Performance
- Recruitment Solutions: Billings grew 15.2% YoY to Rs. 494 crore.
- 99acres (Real Estate): Billings rose 16.0% YoY to Rs. 103 crore.
- Jeevansathi (Matrimony): Billings surged 36.0% YoY to Rs. 28 crore.
- Shiksha (Education): Billings increased 12.3% YoY to Rs. 44 crore.
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Market Outlook
Info Edge continues to maintain its leadership in India’s internet sector. The recruitment business remains the key driver of growth, while the real estate and matrimony segments are showing steady progress. The company is also nearing breakeven in its non-recruitment businesses, further strengthening its overall position.
Disclaimer: The article is for informational purposes only and not investment advice.