Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on July 1, 2025
- The company is one of the leading fintech company in India, offering various digital payments and platform services.
• It marked growth in its top and bottom lines for the reported periods.
• The RI is at a discount of around 40.37% based on its last traded price of Rs. 16.77 as of July 01, 2025.
• Based on its recent financial data, the issue appears fully priced.
• Well-informed investors may park funds for medium to long term.
PREFACE:
This company is coming out with its Rights Issue and it is opening on July 03, 2025. It had a record date for this purpose on June 26, 2025, and its offer document is dated June 198, 2025, but the same was uploaded on BSE Website only on July 01, 2025 noon. It is issuing RI worth Rs. 699.99 cr. at a price of Rs. 10 per share of Re. 1 FV.
ABOUT COMPANY:
Infibeam Avenues Ltd. (IAL) is a premier Fintech company in India, offering various digital payments and platform services. Through its flagship brand, CCAvenue, Infibeam is a significant player in the payment infrastructure market. Its solutions include omnichannel digital payment systems (“Payments”) and Enterprise Software Platforms (“Platforms”) for merchants, institutions, enterprises, and corporations.
The Company also provides lending solutions (“Finance”) to merchants and banks. Infibeam has a strong presence in the India, UAE and Oman and planning to expand to Saudi Arabia, USA and Australia. Its Digital Payment portfolio includes payment acquiring (online and offline via SoftPoS), payment issuance, remittances, and essential infrastructure. IAL facilitates online transactions for merchants across various industries globally and offer eCommerce marketplace infrastructure through a SaaS model. Additionally, the Company provides value-added web-based services to merchants through its Payments and Platforms businesses. IAL’s new lending solutions offer early settlements for payment merchants, with plans to introduce working capital loans and bill/invoice discounting through AI/ ML-based platforms. IAL is dedicated to innovation and delivering top-tier financial technology solutions, empowering businesses to succeed digitally.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 699985723 equity shares of Re. 1 each at a fixed price of Rs. 10 per share to mobilize Rs. 699.99 cr. The RI is opening for subscription on July 03, 2025, and will close on July 11, 2025. The company is offering RI in the ratio of 67 for 267 to its eligible stakeholders as of the record date of June 26, 2025.
The company is asking for 50% money (i.e., Rs. 5 per share) on application for number of shares applied, and the balance by final call as determined by it from time to time. Post allotment, shares will be listed on BSE and NSE. The company is spending Rs. 4.60 cr. for this RI process, and from the net proceeds, it will utilize Rs. 69.84 cr. for investment in wholly owned subsidiary Infibeam Projects Management Pvt. Ltd., and Rs. 294.00 cr. for further investment in its subsidiary Nueromind Technologies Pvt. Ltd., Rs. 87.66 cr. for investment in subsidiary Rediff.com India Ltd., and Rs. 243.89 cr. for acquisitions of unidentified business for future growth and general corporate purposes.
The RI is self-managed by the company itself, and Alankit Assignments Ltd. is the registrar to the issue.
Post RI, company’s current paid-up equity capital of Rs. 278.95 cr. will stand enhanced to Rs. 348.95 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 3489.48 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total revenue/ net profit, of Rs. Rs. 3150.28 cr. / Rs. 155.91 cr. (FY24), Rs. 3992.58 cr. / Rs. 236.02 cr. (FY25). Its NAV stood at Rs. 13.78 per share as of March 31, 2025. Legal outstanding proceedings against the group amounting to Rs. 178+ cr. raises alarm.
DIVIDEND POLICY:
The offer document is silent on its dividend policy. The company has declared dividends of 5% for the FY23 and FY24. It will adopt a prudent dividend policy post listings of RI shares based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 539807 (FV Re.1).
The scrip last closed on cum-right basis at Rs. 21.18 on June 25, 2025, and opened on an ex-right basis at Rs. 19.99 on June 26, 2025. Since then, it has marked a high/low of Rs. 19.99 / Rs. 16.16. The scrip last closed at Rs. 16.77 as of July 01, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 29.48 / Rs. 12.61.
The promoters’ holding has been constant around 27.36+% for the last three quarters ended with March 31, 2025. The counter is currently trading below the RI price making it a pure avoid case.
Conclusion / Investment Strategy
IAL is one of the leading fintech company in India, offering various digital payments and platform services. It marked growth in its top and bottom lines for the reported periods. The RI is at a discount of around 40.37% based on its last traded price of Rs. 16.77 as of July 01, 2025. Based on its recent financial data, the issue appears fully priced. Well-informed investors may park funds for medium to long term.
Review By Dilip Davda on July 1, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
