Info Edge to sell its entire stake in Meritnation for Rs 50 crore, shares rise 2%

Shares of Info Edge (India), which owns online job portal Naukri, rose nearly 2 per cent in intraday trade on Friday after the company said it has entered into an agreement for divestment its entire stake in Applect Learning Systems (Meritnation). The sale value of the investment is determined as about Rs 50 crore. The deal is expected to close by 31 March, 2020.  

"Info Edge India Ltd has, pursuant to the authorisation given by the board of directors on recommendation of the audit committee, entered into an agreement for divestment of its total shareholding, on fully converted and diluted basis, (including holding through its wholly owned subsidiary) in Applect Learning Systems Private (Meritnation)," the company said in a filing to the Bombay Stock Exchange.

Reacting to the news, share price of Info Edge gained as much as 1.90 per cent to hit an intraday high of Rs 2,580 against previous close of Rs 2,531.85. Earlier today, the stock opened lowered at Rs 2,510. There was also surge in volume trade as 1.40 lakh shares changed hands over the counter as compared to two-week average volume of 3,863 shares.

Also Read: IIFL Securities stock locked at upper circuit of 5% after Rakesh Jhunjhunwala buys 27.85 lakh shares

In a similar trend, shares of Info Edge were trading 1.29 per cent lower at Rs 2,567.95 apiece on the National Stock Exchange (NSE).

Meritnation owns and operates website with the name of www.meritnation.com which is delivering kindergarten to Class 12 (K-12) study material. During the financial year 2018-19, the company had net sales of Rs 34.76 crore.

Also Read: Value of this stock has doubled in a month! Rakesh Jhunjhunwala owns over 27 lakh shares

The shareholding has been agreed to be bought by Aakash Educational Services Limited (AESL). AESL is India's largest medical test preparation provider with network of over 200 centers across 130 cities. AESL recently partnered with the Blackstone Group, one of the world's leading investment firms, to build India's largest digitally enabled, omni-channel education company.

Last month, Info Edge had said that it will acquire Highorbit Careers - that operates job portals iimjobs.com and hirist.com - for cash consideration of Rs 80.82 crore.

By Chitranjan Kumar