Info Edge, the parent company of naukri.com, on Wednesday announced that its board of directors has approved a stock split in the ratio of 1:5. This is the first-ever stock split bythe company. This means that one equity share of the company, having a face value of Rs 10 apiece, will be split into five equity shares having the face value of Rs 2 each, fully paid-up.
“The authorized share capital of the company is Rs 150,00,00,000 (Rupees One Hundred and Fifty Crores) divided into 75,00,00,000 (Seventy Five Crores) equity shares of face value of Rs 2 (Rupees Two only) each.” it said.
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The purpose of the share split, it said, is to enhance the liquidity of company’s equity shares and to encourage participation of retail investors by making its equity shares more affordable. The stock split will be completed tentatively within two months from the date of approval of the shareholders of the company and any regulatory/ statutory approvals as required.
Info Edge did not disclose the record date. In a regulatory filing, Info Edge said, “The Record Date for the purpose of the sub-division/split of equity shares shall be decided after taking aforesaid approval of the shareholders of the Company and the same will be intimated in due course.”
Besides this, the company will also release its fiscal third quarter earnings report today. Per an analysis report by Kotak Institutional Equities, Info Edge is expected to post net sales at Rs 681.4 crore, up 14.5 per cent YoY. Ebitda for the quarter is estimated at Rs 288.2 crore, up 19.8 per cent YoY and net profit is projected at Rs 259.1 crore, up 21.4 per cent YoY. “We expect Naukri to report 12 per cent YoY revenue growth and 99acres to report 17 per cent yoy revenue growth. Other segments to report 27.3 per cent and 32 per cent YoY revenue growth, respectively. We expect higher YoY growth for Naukri based on recent billings growth prints and assumption of some recovery in hiring by IT companies,” the brokerage firm said.
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