Monday 16 September 2019

Infibeam Avenues to demerge SME e-commerce service, marketplace business

Infibeam Avenues to demerge SME e-commerce service, marketplace businessNEW DELHI: Infibeam Avenues' board has cleared demerger of its various entities, including SME e-commerce services undertaking and e-commerce business undertaking, which will allow management of each resulting firms to pursue independent growth strategies.

Under the scheme, Infibeam Avenues Ltd (IAL) will demerge its SME e-commerce as well as the e-commerce marketplace businesses of NSI to Suvidhaa, while theme park and event business will be demerged and vested to DRC Systems, a statement said.

Subsequently, subject to regulatory approvals, both the entities Suvidhaa and DRC will be listed on the stock exchanges, it added.

"Suvidhaa will issue 197 equity shares for every 1,500 equity shares to the shareholders of IAL. DRC will issue 1 equity share for every 412 equity shares to the shareholders of IAL," it said.

Through the demerger, Infibeam will continue to focus on digital payments and e-commerce enterprise platform solutions, the statement said.

Further, the strategic alliances with the demerged entity, the company aims to create enhanced value for the shareholders and specialisation for sustained growth, it added.

As per a regulatory filing, the restructuring will allow the management of each of the resulting companies to pursue independent growth strategies in markets, and create enhanced value for shareholders.

It will also enhance competitive strength, achieve cost reduction and efficiencies of the aforesaid companies and thereby, significantly contributing to future growth.

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