Infibeam Avenues shares jump 10%, halt 5-day losing run; here's why

Shares of Infibeam Avenues rose sharply in Monday's trade, pausing their losing run of five straight sessions. The stock jumped 9.86 per cent to hit a day high of Rs 16.15 over its previous close of Rs 14.70. The scrip was in focus as Infibeam received a perpetual license from the Reserve Bank of India (RBI) for its bill payments business, BillAvenue.

A total of 5.43 lakh shares changed hands today. The turnover on the counter stood at Rs 85.01 lakh on BSE. The company commanded a market capitalisation (m-cap) of Rs 4,229.18 crore.

On BSE, there were 3,65,975 sell orders against 2,18,185 buy orders. On NSE, 62.41 lakh shares changed hands with a turnover of Rs 9.78 crore.

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At today's high level of Rs 16.15, Infibeam Avenues has gained 29.20 per cent compared to its 52-week low of Rs 12.50, hit in May this year. That said, the stock has lost 32.93 per cent from its one-year high level of Rs 97.30, hit in January 2022.

The scrip has slipped 16.22 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has dropped by 21.56 per cent.

Infibeam, in an exchange filing, stated that it has "received a perpetual license from the RBI for its bill payments business, BillAvenue, for operating as a Bharat Bill Payment Operating Unit (BBPOU) under Bharat Bill Payment System (BBPS). As a BBPOU, BillAvenue operates as both biller and customer operating unit onboarding Billers and Agent Institutions to service the customers."

The perpetual license would help the company to offer safe, secure and uninterrupted services, it added.

In March this year, the Reserve Bank issued a framework under which payment aggregators are mandated to obtain a license for acquiring merchants and providing them with digital payment acceptance solutions.

On the technical front, the stock has support at Rs 14, an analyst said.

"After a brutal sell-off aided by a negative divergence on the daily charts, Infibeam now finds itself at a crucial support of Rs 14. Investors should buy only if the daily close is above Rs 16.55 for higher targets of 17.8-20.3 in the near term," said A R Ramachandran from Tips2trades.

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Meanwhile, Indian equity benchmarks climbed in early deals, led by gains in banking, automobile, metals, consumer and energy stocks.