Published on 14/07/2017 2:25:37 PM | Source: Dion Global Solutions Ltd.
Infibeam board okays share split, CC Avenue amalgamation
The board of e-commerce firm Infibeam Incorporation has approved share split plan in the ratio of 1:10 that will make its scrip more affordable for the investors and increase market liquidity. The board also cleared amalgamation of CC Avenue with the company in which Infibeam has controlling stake. "...The Board of Directors of the Company at its meeting held on Thursday July 13, 2017... Has approved..Split/sub- division of equity shares of the company from existing face value of Rs 10 per equity share to face value of Re 1 per equity share.
Amalgamation of Avenue (India) Private Limited (CC Avenue) with the company," Infibeam said in a filing to the Bombay Stock Exchange. The board also approved altering the capital clause of memorandum of association, in connection with the split of shares, setting up of Infibeam Employees Welfare Trust. The company said that splitting of stock will improve liquidity of equity shares with higher floating stocks and make them affordable for the investors. The process of share split will be completed in approximately two months from now. Infibeam said that it will amalgamate CC Avenue through equity route. Under the arrangement "260 fully paid up equity shares of face value of Rs 10 each of Infibeam Incorporation for every 100 fully paid shares of face value of Rs 10 each of Avenues (India) Private Limited (CC Avenue)", the filing said.
Post amalgamation of CC Avenue with the company, promoters shareholding in Infibeam will come down to 36.46 per cent from 44.52 per cent at present in resultant entity. Meanwhile, shares of the company were trading at Rs 1137.50 apiece, up 1.12 per cent from the previous close at 13:10 hours on BSE.