Info Edge board approves stock split in 1:5 ratio, shares rise

Info Edge

The board of Info Edge, the online classified and recruitment company, has approved a stock split in the ratio of 1:5, the company informed through an exchange filing on February 5.

Shares of the Info Edge were higher by over 2.5% at 11:50am, soon after the announcement was made.

The purpose of the share split is to 'enhance the liquidity of Company's equity shares and to encourage participation of retail investors by making equity shares of the Company more affordable', said the company, as part of its statement. The split will be completed 'tentatively' within two months from the date of approval of shareholders and any regulatory approvals as required.

According to the split ratio, existing one equity share of Rs 10 face value each will be sub-divided/split into five equity shares with face value of Rs 2 each, fully paid-up. After the split, the authorized share capital of Info Edge will become 75 crore equity shares of Rs 2 per share face value.

Info Edge reported a fall of 64.6% on year in its net profit for September quarter at Rs 84.73 crore, while revenue from operations rose by 12% on-year to Rs 700.82 crore. The board will also consider the December quarter results on February 5.

During the September quarter earnings call, the management had expressed confidence of growth opportunities across all its businesses, especially in recruitment, which it said had started to show recovery. The recruitment segment of the business is expected to continue grow in the December quarter as well, the company had said.

Info Edge also said it had started to witness double-digit billing growth during Q2FY25, a pre-cursor to growth in hiring. With IT hiring humming once again, Info Edge said the company should target revenue growth in the teens going forward.

As per Naukri's January Jobspeak survey, 2025 has started on a positive note with a 4% YoY hiring growth, lead by FMCG, Insurance, Hospitality and Pharma sector.