India’s first public e-commerce company, Infibeam Avenues, has demerged Suvidhaa (Suvidhaa Infoserve Private Limited) and DRC (DRC Systems India Private Limited) to unlock its shareholder’s value.
As per the Ahmedabad-based company, it will demerge its SME e-commerce and e-commerce marketplace businesses of NSI (NSI Infinium Global Private Limited ) to Suvidhaa while the theme park & event business to DRC Systems.
Post demerger, Infibeam Avenues Group will continue to hold 5% in Suvidhaa, and 25% in DRC Systems and both entities will be listed on the stock exchanges – BSE and NSE.
Each shareholder of Infibeam Avenues will get 197 shares of Suvidhaa’s stock for every 1,500 shares of Infibeam. On the other hand, DRC will issue 1 equity share for every 412 equity shares to the shareholders of Infibeam Avenues Limited.
Last year, Suvidhaa picked up over 6% stake in NSI Infibeam Global for Rs 25 crore at a valuation of Rs 500 crore whereas Infibeam had acquired DRC Systems in 2017.
“With this verticalization, each business would be able to focus on its growth trajectory, ” said the company in a press statement. Infibeam will focus on fintech, enterprise technology platform and data business, while the demerged Suvidhaa will focus on SME e-commerce services and omnichannel e-marketplace.
Primarily started as an e-commerce firm, it had expanded into B2B services such as payment gateway (CC Avenue), bill payments (Bill Avenue), and data center services.
The company operates as a payment processor for online merchants, websites and commercial users for which it charges a fee on transactions.
Infibeam’s payment system CCAvenue provides nearly 250 unique payment options in India, processing payments across 27 international currencies that enable online and mobile payments for merchants.