After selling its position in Fable Fintech, Infibeam Avenues' stock increased by 6%

26 Feb 2024 , 11:30 AM

Infibeam Avenues’ stock price increased by 4% during the first trading session on February 26 following the board’s approval of the financial technology company’s acquisition of a 20% share in the US-based XDuce Corporation.

Infibeam Avenues was trading at ₹36.65 at 11:26 a.m. on the BSE, up ₹2.20, or 6.38% from previous close.

XDuce is a prominent enterprise app and AI development firm that was founded in 2006. It specialises in creating cutting-edge AI solutions for companies trying to enhance their customer-facing platforms and internal operations for a range of industry verticals.

If all the required clearances are obtained, the acquisition, which will cost no more than $10 million in cash, will be finalised in 90 days.

The incorporation of a wholly owned subsidiary in IFSC, GIFT CITY, Gandhinagar, was also approved by the board. The proposed business would operate as a Payment Service Provider (PSP), providing payment services.

Additionally, it approved the sale of 85,000 equity shares in Fable Fintech Private Limited, which would no longer be considered a business associate.

For a total of ₹15.30 Crore, the sale/disposal deal is anticipated to be finalised in 45 days.

The company’s net profit for the December quarter increased by 15.7% to ₹41.44 Crore.

The business stated in December that it was entering the capital markets and digital lending software space by purchasing a 49% share in Pirimid Fintech.

Businesses and governments in a variety of industry verticals can benefit from Infibeam Avenues’ enterprise software platforms and digital payment solutions. Its payment infrastructure solution consists of providing banks with infrastructure as well as obtaining and issuing solutions.

A 52-week high of ₹40 was reached by the share on February 2, 2024, while a 52-week low of ₹12.85 was reached on March 28, 2023. At the moment, the stock is trading 179.07% above its 52-week low and 10.35% below its 52-week high.

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