Info Edge went up over 9.5% to Rs.1288.35, clocking volumes of almost 8 times.
The company announced yesterday after market hours that it has entered into an agreement with Soft Bank’s wholly owned subsidiary in Cayman Island wherein Soft Bank has agreed to invest an amount equivalent to about $ 45 million for 49.99% stake in Diphda Internet Services, a wholly owned-subsidiary of Info Edge.
Info Edge has also agreed to invest an amount equivalent to about $ 45 million in Diphda for 50.01% stake (on a fully diluted basis); and to jointly invest through Diphda, an amount equivalent to about $ 90 million in Etechaces Marketing & Consulting. Etechaces owns PolicyBazaar and PaisaBazzar.
The company said that these strategic investments would help the company to consolidate its presence into the business of Insurance & financial products aggregator within the internet services industry.
Post this development, Morgan Stanley has given Info Edge a target price of Rs.1900 and said that the investment in Etechaches will help the company increase its presence in the insurance sector and showed the ability of the company to go for larger deals.