Shares of Info Edge (India) have surged 10% to Rs 1,288 per share on the BSE in intra-day trade after the company announced that it has signed an agreement with SoftBank to jointly invest $90 million in Etechaces Marketing and Consulting, the parent of PolicyBazaar, for an 8.93% stake on a fully diluted basis.
The investment will be routed through its subsidiary Diphda Internet Services floated earlier this month.
“The Company has entered into an agreement with SVF India Holdings (Cayman) (‘Soft Bank’), a wholly owned subsidiary of SoftBank Vision Fund L.P., of which SoftBank Group Corp. is a limited partner, whereby Soft Bank has agreed to invest an amount equivalent to about $ 45 million for 49.99% stake (on a fully diluted basis) in Diphda Internet Services (‘Diphda’), a wholly owned-subsidiary of the Company, for the time being,” Info Edge (India) said in a statement.
Thereby the company has also agreed to invest an amount equivalent to about $ 45 million in Diphda for 50.01% stake (on a fully diluted basis); and to jointly invest through Diphda, an amount equivalent to about $ 90 million in Etechaces Marketing & Consulting Pvt. Ltd. (‘Etechaces’) for 8.93% stake (on a fully diluted basis post completion of fund raise exercise with other investors), it added.
At 09:57 am; Info Edge (India) was trading 6% higher at Rs 1,250 on the BSE, as compared to 0.11% rise in the S&P BSE Sensex. A combined 217,344 shares changed hands on the counter on the NSE and BSE so far.