Info Edge share price hits fresh 52-week high on QIP launch for fundraising; stock rallies 116% since March

Info Edge shares have rallied over 116 per cent from March lows of Rs 1,580 apiece.

Info Edge shares surged nearly 7 per cent to hit a fresh 52-week high of Rs 3,419.15 apiece after the company announced to raise up to Rs 1,875 crore via qualified institutional placement (QIP). The company in an exchange filing informed that the board of directors in a meeting approved and authorised the opening of the QIP on August 4, 2020. The floor price has been fixed at Rs 3,177.18 per equity share. “The company may, in accordance with the special resolution dated July 27, 2020 of the shareholders, at its discretion offer a discount of up to 5% on the floor price in the QIP,” it said.

Info Edge shares have rallied over 116 per cent from March lows of Rs 1,580 apiece. According to an exchange filing dated June 22, the board of directors of the company approved the fundraising through issue of equity shares of face value of Rs 10 each, by way of Qualified Institutions Placement to eligible qualified institutional buyers for an aggregate amount not exceeding Rs 1,875 crore. In another development, the company has informed that a meeting of the Fund Raise Committee of the company is scheduled to be held on August 7, 2020, to consider, determine and approve the date of closing of the QIP, the issue price of the equity shares of the company to be issued in the QIP, including a discount.

Around 11.30 AM, Info Edge shares were trading 5.3 per cent higher at Rs 3,369.60 apiece as compared to a 0.70 per cent rise in the benchmark S&P BSE Sensex. Info Edge (India) reported a consolidated net profit of Rs 119 crore for the January-March quarter of the preceding fiscal, a decline of 63 per cent from a net profit of Rs 325.2 crore in the year-ago period. The management, while announcing the quarter earnings, informed that the company will continue to evaluate the unfolding situation of the coronavirus pandemic. It further added that the work from home and business continuity plan have been operating satisfactorily.