Info Edge India Limited, which operates online job platform Naukri.com, has approved to raise Rs 1875 crore via qualified institutional placement offering or QIP.
The sum mentioned above will be raised from qualified institutional buyers or QIB as a part of InfoEdge’s growth strategy and to augment the long-term resources of the company. The company would create, issue, offer and allot the equity shares of Info Edge at face value of Rs 10.
According to a Bombay stock exchange filing, Info Edge’s fundraising committee has authorized the opening of the QIP with the floor price of Rs 3,177.18 per equity share. The company, at its discretion, has also offered a discount of up to 5% on the floor price in the QIP.
QIP is a tool used by public companies to sell shares or other securities, which are convertible into stocks, to qualified institutional buyers including mutual funds and insurance companies.
The company had passed a special resolution after voting through postal ballot (e-voting) and 99.53% votes were cast in favor of issuing fresh capital. The development has triggered a 7% jump in Info Edge stock as compared to Tuesday. It was trading at Rs 3200 per share at the closure of the market yesterday. It has climbed up to Rs Rs 3,378 per share at the time of publishing this story.
It is worth noting that Info Edge is the second major company after Kotak Mahindra Bank to raise funds through QIP this year. In May, the private bank raised Rs 7,442 crore from Canada Pension Plan Investment Board, ICICI Prude, and Invesco Oppenheimer Developing Markets Fund.
Info Edge is a leading internet business that owns and operates Naukri.com, Jeevansathi.com, 99acres.com, and Shiksha.com. The company has over 70 offices in 47 cities in India and overseas offices in Dubai, Riyadh, Abu Dhabi, and Bahrain catering to the Middle East market.
Over the years, it also invested in companies such as Zomato, PolicyBazaar, and Happilyunmarried, Mydala, and 99labels among several others. Early this year, the Info Edge had also launched its Rs 100 crore worth maiden venture capital fund to back tech startups in India.
