|
The contributions can be made by the Company directly or through wholly owned subsidiary subsidiaries in accordance with the multiple drawdowns by the respective funds over the years.
The three schemes are Info Edge Venture Fund Follow-on I, a scheme of Info Edge Venture Fund (“Follow on I”), Info Edge Venture Investment Fund II, a scheme of Info Edge Capital (“Fund 2A”) and Capital 2B Fund I, a scheme of Capital 2B (“Fund 2B”).
The said investment would fall under related party transactions as a controlled trust in accordance with Regulation 2(1)(zb) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction qualifies as material related party transaction and hence would be subject to shareholders' approval. The transaction is done at Arm's Length basis.
Follow on I, Fund 2A and Fund 2B are trusts registered with SEBI as category II AIF (Fund 2B is registered with SEBI, while scheme approval is awaited), under the SEBI Alternative Investment Funds (AIFs) Regulations 2012, sponsored through Smartweb Internet Services Ltd. a wholly owned subsidiary of the Info Edge.
The said investment is in line with company's strategy on external financial investments that are focused on value creation in medium to long term prospects of the Company. The transaction is subject to Shareholders' approval, it being material related party transaction and subject to approval of scheme by SEBI in case of Fund 2B.
Respective contribution agreements with funds would be signed immediately, subject to shareholders' approval (and approval of scheme by SEBI in case of Fund 2B). Actual drawdown will take place from time to time.
The mode of consideration is by cash and the total cost of acquisition is Rs 1,300 crore. Rs 400 crore for Info Edge Venture Fund(Follow-on I), Rs 600 crore for Info Edge Venture Investment Fund II and Rs 300 crore for Capital 2B Fund I. The financials for the past years of the three schemes are not available.
Info Edge (India) is among the leading internet companies in India. The company runs leading internet businesses viz. Naukri.com, Jeevansathi.com, 99acres.com and Shiksha.com. The company also owns Quadrangle and Naukri Gulf. It has made significant strategic investments such as zomato.com, policybazaar.com and happily unmarried.com etc.
The company reported 90.7% rise in standalone net profit to Rs 133.25 crore in Q3 FY22 from Rs 69.87 crore in Q3 FY21. Net sales increased by 48.1% YoY to Rs 403.26 crore during the quarter.
The scrip fell 0.76% to end at Rs 4750 on BSE, on Wednesday, 13 April 2022.
|