Info Edge’s Investment in NewInc Internet Services Pvt. Ltd

On June 19,2024, Allcheckdeals India Pvt. Ltd (ACD), a wholly owned subsidiary of Info Edge (India) Limited, has decided to invest ₹1 crore in its subsidiary, NewInc Internet Services Private Limited, which is also a step-down subsidiary of Info Edge (India) Limited.

Transaction Details

The acquisition qualifies as a related party transaction since Allcheckdeals India Pvt. Ltd is a wholly owned subsidiary of Info Edge (India) Limited, and NewInc is a wholly owned subsidiary of Allcheckdeals India Pvt. Ltd, making it a step-down wholly owned subsidiary. Therefore, NewInc is considered a related party during this investment. Info Edge (India) Limited’s promoters have no interest in this investment, and the transaction is conducted on an arm’s length basis.

Purpose Of Acquisition

NewInc provides various internet, computer, and electronic data processing services. The investment supports NewInc’s working capital needs and other general corporate purposes.

Details Of Acquisition

The investment will be made through cash consideration, amounting to ₹1 crore, and the acquisition is expected to be completed within 30 days from approval.

Allcheckdeals India Pvt. Ltd will acquire 1,00,000 Compulsorily Convertible Debentures (CCDs) with a face value of ₹100 each, representing 0.0001% of NewInc. After this investment, NewInc will continue to be a step-down wholly-owned subsidiary of Info Edge (India) Limited.

About NewInc Internet Services Private Limited

NewInc offers a wide range of internet, computer, and electronic data processing services. The company was incorporated on December 27, 2016. As of March 31, 2024, NewInc reported a turnover of ₹0, a profit after tax (PAT) of ₹14,527,000, and a net worth of₹55,721,776.

About Info Edge (India) Limited

Info Edge is India’s leading online classifieds company, managing a diverse portfolio of brands. It owns several well-known brands across various sectors, including Naukri.com (online recruitment), 99acres.com (online real estate), Jeevansathi.com (online matrimonial), and Shiksha.com (online education information services). Additionally, Info Edge is an investor, backing numerous startups in the online space and continuously expanding its investment portfolio.

On June 20, 2024, Info Edge share price opened at ₹6,241.75, touching the highest price of ₹6,335.75 as of 11:58 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.