Shares of Infibeam Avenues Ltd fell as much as 8 percent as the stock traded ex-date for spin off of its digital marketing arm Odigma Consultancy Solutions.
Today (September 11) is also the record date for the purpose of determining the eligibility of shareholders of Infibeam Avenues for the issue and allotment of equity shares of Odigma Consultancy Solutions.
At 12:43 pm, Infibeam Avenues shares were 4 percent lower at Rs 29.23 on the National Stock Exchange (NSE). The stock has gained around 32 percent so far this year.
In the past 12 months, the stock has gained around 57 percent compared to a 28 percent rise seen in benchmark Nifty during the same period.
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Upon the demerger taking effect, shareholders of Infibeam Avenues on the record date will receive one fully paid-up equity share of Re 1 in Odigma Consultancy Solutions Limited for every 89 Re 1 shares they hold in Infibeam Avenues.
If a shareholder’s holding in Infibeam Avenues results in a fractional entitlement to shares of Odigma, no fractional shares will be issued by Odigma.
Instead, Odigma will consolidate these fractional shares and allot them to a trustee nominated by its board of directors. The trustee will sell the consolidated shares in the market and pay the net proceeds to Odigma.
After withholding any applicable taxes, Odigma will distribute the proceeds to the respective shareholders of Infibeam, proportionate to their fractional entitlements.
The equity shares proposed to be allotted by Odigma are proposed to be listed on BSE and NSE, subject to necessary regulatory approvals, Infibeam Avenues said on August 30.
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In a note last month, KRChoksey Shares & Securities expressed confidence in Infibeam Avenues' ability to execute its expansion plans through improved geographical diversification, anticipated higher TPV growth, and the synergies from its recent acquisitions.
The brokerage maintained a 'buy' rating on stock as it believes that the company is poised for substantial growth, supported by its recent acquisitions, international expansion, and new product offerings.
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