Info Edge share price hits all-time high after firm launches QIP to raise Rs 1,875 crore

Share price of Info Edge rose to all-time high after the firm launched a qualified institutional placement (QIP) to raise Rs 1,875 crore today. Info edge stock gained 6.89% to Rs 3,420, a record high, against previous close of Rs 3,200 on BSE. Later, the stock ended 4.82% or Rs 154 higher at  Rs 3,354 .

The stock has gained 6.63% in lat two days.  Info Edge (India) share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Info Edge share has gained 56% in one year and risen 32.54% since the beginning of this year. The share has gained 21.21 % in one month.

Total 0.33 lakh shares changed hands amounting to turnover of Rs 11.08 crore.

The company has set a floor price of ?3,177.18 per share for the QIP.  On Tuesday, share price of Info Edge closed  1.43% higher at ?3,200.05 on BSE.

"We propose to utilise the net proceeds to augment our long term cash resources, for meeting the fund requirements of our business activities and general corporate purposes as a part of our growth strategy," the company said in a prospectus filed with the stock exchanges.

Investment banks Credit Suisse, IIFL Securities and others are advising the company on the share sale.

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Since COVID-19 and the ensuing lockdown hit Indian markets, only two firms have managed to raise funds through the QIP route.

In June, JM Financial raised ?770 crore through a QIP, earlier in June. The QIP saw allotment of 11 crore equity shares at a price of Rs 70     apiece. The issue opened on June 9 and closed on June 12.

In May, Kotak Mahindra Bank raised ?7,442 crore by selling shares to institutional investors including Invesco Oppenheimer Developing Markets Fund, Canada Pension Plan Investment Board (CPPIB) and ICICI Prudential Asset Management. The issue comprised sale of 6.5 lakh equity shares.

Info Edge (India) is engaged in providing information technology services. The company is involved in online classifieds business. Its segments include recruitment solutions, 99acres, online restaurant discovery and others. Other segment includes Jeevansathi and Shiksha services. The company is engaged in the business of internet-based service delivery operating in over four service verticals through web portals.

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