Info-tech

Infibeam Avenues Q2 standalone net slips to Rs 5 crore

Our Bureau Ahmedabad | Updated on November 12, 2020

Board gives nod to acquire 33% stake in a digital payments company

Infibeam Avenues Limited on Thursday posted standalone net profit at Rs 5 crore for the quarter ended September 2020, down from Rs 10 crore reported in the corresponding quarter a year ago.

The company's standalone income from operations stood at Rs 130 crore for the quarter against Rs 151 crore in the same period last year.

On consolidated basis, company reported net profit at Rs 9 crore for the quarter, which is down by about 65 per cent when compared to Rs 26 crore in the corresponding period last year. Consolidated income from operations was reported at Rs 154 crore for the quarter against Rs 168 crore in the same period last year.

The company informed that its board of directors has approved to invest, pending definitive agreements, in So Hum Bharat Digital

Payments Private Limited (So Hum) to apply for RBI’s New Umbrella Entity licence for retail payment systems.

So Hum is in the business of setting up, managing and operating new payment systems especially in the retail space. It comprises, but not limited to, ATMs, White Label PoS; Aadhaar based payments and remittance services along with operating clearing & settlement systems, developing new payment methods and any other business as suitable to further strengthen the retail payments ecosystem in the country, it added.

In a regulatory filing, the company informed that the acquisition will be a related-party transaction "and the same is on arm's length basis. However, the Promoters/ Promoter group/ group companies do not have any interest," it added.

Infibeam Avenues will acquire 33.33% shareholding, post which So Hum will become its associate company.

The aggregate cost of investment not exceeding Rs. 18 crore, to be invested in the equity shares of the face value of Rs 10 each at par.

Infibeam Avenues share price gained nearly 3.50% on BSE to close at Rs 86.30 on Thursday.

Published on November 12, 2020

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