Infibeam Avenues Shares Experience Significant Decline
Overview: On September 11, shares of Infibeam Avenues faced a sharp decline, plunging by as much as 8% in early trading. This downturn coincides with the company’s stock becoming ex-dividend for the spin-off of Odigma Consultancy Solutions, which is effective today. Under the spin-off arrangement, every shareholder of Infibeam Avenues will receive shares of Odigma in a 1:89 ratio. The record date for this allocation was set for today, determining which shareholders qualify for the new shares.
Details of the Spin-off
The company has announced that for every 89 shares of Infibeam Avenues owned, shareholders will be entitled to one share of Odigma Consultancy Solutions. Notably, should an investor be eligible for partial or fractional shares, those will not be allocated directly. Instead, Odigma will aggregate these fractional shares and sell them on the market, with the proceeds distributed among the respective investors.
Odigma’s new equity shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It’s worth noting that the Ahmedabad bench of the National Company Law Tribunal (NCLT) granted approval for this spin-off in early August.
Current Trading Status
As of 12:45 PM on September 11, shares of Infibeam Avenues were trading down nearly 4% at a price of Rs 29.24. Despite today’s downturn, the company’s shares have gained approximately 32% since the start of the year, and over the last year, they have delivered a remarkable 58% return to investors. In contrast, the Nifty index has seen a growth of 28% during the same period.
Analysts’ Perspectives
Market analysts remain optimistic regarding Infibeam Avenues’ future. KRChoksey & Securities expressed strong confidence in the company’s expansion strategies, highlighting its robust growth potential empowered by recent acquisitions and new international opportunities. Additionally, Daulat Capital has revised the earnings forecasts for Infibeam Avenues for FY25 and FY26, increasing them by 12.5% and 5% respectively.
Conclusion
In summary, while Infibeam Avenues faces a short-term setback with today’s decline in share prices, the long-term outlook appears positive, bolstered by strategic initiatives and analysts’ supportive reports. Investors are advised to keep an eye on the unfolding developments regarding the spin-off and the company’s performance in the coming quarters.
